Download Notes Supply and Demand

Name__________________________________ Date_______________ Period_____
Notes Supply and Demand
1. Supply -- the ________________ of a product that ______________________ are
______________ and __________ to _____________ at different _________________
2. Demand – the __________________ of a product or service that _______________
are _________________ and _________________ to buy at different ______________
3. Market Price – the _____________ at which ________________ and
_______________ agree to trade
4. Equilibrium Point – the point at which quantity ____________________ equals
quantity ___________________
5. Surplus – an ____________ amount of something
6. Shortage – when there is __________________________ of something
Think about our class discussion when studying the following:
A. When prices are ________________, suppliers are willing to supply ____________
of a product. Therefore, the ______________________________ looks the way it does
because as ______________ go up, the _____________________________ goes up.
B. When prices are ___________, buyers will demand ______________ of a product.
Therefore, the ______________________________ looks the way it does because as
________________ go down, the _________________________________ will go up.
C. The point on the graph at which the ___________________________ EQUALS the
________________________________ is called the ___________________________
or the _________________________________________.
D. At any price ___________________ the __________________________________,
there will be a ___________________________ because the quantity
______________ is _________________ than the quantity _____________________.
E. At any price ___________________ the __________________________________,
there will be a ___________________________ because the quantity
______________ is _________________ than the quantity _____________________.
Name_____________________________ Date____________________ Period_____
Notes– How to read the Supply and Demand Graph
Directions: On the graph below, label the x-axis “Quantity” and label the y-axis
“Price.” Place the following coordinate points on the graph below. Then connect the
points with a line. Label each line as directed.
Label this line “Supply”
Producers will
supply this
quantity of
. . . at this price
blueberries . . .
x
y
200
$1.00
400
$1.50
600
$2.00
800
$2.50
1000
$3.00
1200
$3.50
1400
$4.00
Label this line “Demand”
Buyers will
demand this
quantity of
. . . at this price
blueberries . . .
x
y
200
$4.00
400
$3.50
600
$3.00
800
$2.50
1000
$2.00
1200
$1.50
1400
$1.00
Supply and Demand for Blueberries
Name______________________________ Date__________________ Period______
Practice Understanding Supply and Demand
Directions: Use your notes and your Supply and Demand Graph to answer the
following questions.
1. What happens to the quantity supplied as price goes up?
2. What happens to the quantity demanded as price goes down?
3. What happens to the quantity supplied as price goes down?
4. What happens to the quantity demanded as price goes up?
5. At what price would there be a surplus?
6. WHY would there be a surplus at this price? Use the words “supply” and
“demand” in your answer.
7. What might sellers do to their prices if a surplus occurs?
8. WHY would sellers do this to their prices?
Notice that this forces the price back down to the ___________________________.
9. At what price would there be a shortage?
10. WHY would there be a shortage at this price? Use the words “supply” and
“demand” in your answer.
11. What might sellers do to their prices?
12. WHY would sellers do this to their prices?
Notice that this forces the price back up to the _____________________________.