G5 -Supply and demand

What is an ECONOMY?

An ECONOMY is a a system of producing, selling, and buying goods and services. They can happen at the local, national, or global level.

GOODS - Products people buy or use

SERVICES - Actions that people provide

CONSUMERS - People who buy goods or services for personal use

What is an Economy ?

Economy is the way people spend money and the way people make money.

Supply and Demand

Supply is the amount there is of something.

Demand is how much people want it.

When there's more supply than demand, prices go down. When there's more demand than supply, prices go up.

Multiple Choice

Cold weather in Florida has damaged this year’s orange crop. Farmers have only half of the usual amount of oranges to sell. What will happen to the price of oranges?

• The price will go up.

• The price will go down.

Multiple Choice

Farmers in California have had wonderful weather. They have produced the largest crop of watermelons in years. What will happen to the price of watermelons?

• The price will go up.

• The price will go down.

Multiple Choice

4) Living on a budget means you

• A. can never buy anything fun.

• B. should get everything that you want.

• C. don’t have to make choices about your money.

• D. are planning how to spend and save your money.

Multiple Choice

Farmers in California have had wonderful weather. They have produced the largest crop of watermelons in years. What will happen to the price of watermelons?

• The price will go up.

• The price will go down.

Multiple Choice

Which of the following is a commodity?

• A pair of shoes you wear every day.

• Tomatoes from the farmers market.

• Your laptop computer.

• An old comic book in mint condition.

Multiple Choice

McDonald's bought too many fries and can't sell them before they expire. What should they do?

• Raise the price so that less people buy fries.

• Lower the price so that people buy extra fries.