5. EPP W-6.pptx for grade 2 lessons to learn

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1. Objective: Identify the difference between Demand and Supply

2. What is Demand? Quantities of a particular good or service consumers are willing and able to buy at different possible prices.

3. The Law of Demand Consumers buy more of a good when its price decreases and less when its price increases. When price Demand When price Demand goes up.. goes down.. goes down.. goes up..

4. Factors of Demand 1. Changes in income ( the income effect).. when income consumers goes up buy more when income consumers goes down buy less

5. Factors of Demand 2. Prices or availability of substitutes ( substitution effect) a substitute is a good that can be used in place of another. or

6. Factors of Demand 3. Prices or availability of complementary goods… complementary goods are things that are often sold or used together or

7. Factors of Demand 4. Changes in the number of buyers… more people (buyers), more sales

8. Factors of Demand 5. Changes in tastes and preferences… then now

9. What is Supply? Supply: The amount of a product that is offered for sale at all possible prices in the market.

10. The law of demand describes how price affects CONSUMERS… And the law of supply describes how price affects PROCEDURES

11. Factors of Demand 1. Cost of inputs ( factors of production ).. when production supply costs go up goes down when production supply cost go down goes up

12. Factors of Demand 2. Changes in productivity… when productivity supply goes up goes up when productivity supply goes down goes down

13. Factors of Demand 3. Change in the number of sellers in the market… More sellers in a market= increase supply. Fewer sellers in a market = decrease supply.

14. What’s the Price? Directions: Read each statement in the cause column. Predict what will happen to the price and explain why. Cause Effect Today is the day before the 4 th of July holiday and the fireworks stand is almost out of fireworks. What will happen to the price of fireworks? The price will _____________________________________because ____________________________________________________________________________________________________________________________________ There are lots of holiday ornaments still on store shelves the day after Christmas. What will happen to the price of the ornaments? The price will _____________________________________because ____________________________________________________________________________________________________________________________________

15. Cause Effect An oil well explosion reduces the amount of oil available to make a gasoline for cars and trucks. What will happen to the price of gas? The price will _______________________________because ________________________________________________________________________________________________________________________________________________________ A bakery accidentally bakes too many cupcakes one morning. Instead of 30 cupcakes, they now have 300. What will happen to the price of the cupcakes? The price will _______________________________because ________________________________________________________________________________________________________________________________________________________