Transcript What would happen to the price of diamonds if diamonds can be

What would happen to the
price of diamonds if diamonds
can be produced in any high
school chemistry lab?
What would happen to the
demand for bicycles priced at
$500 if the price is doubled?
What would happen to the price of name
brand sneakers if they lost their celebrity
endorsement?
What would happen to the supply of
strawberries if a winter freeze damages the
crop?
What would happen to the price of
strawberries if a winter freeze damages the
crop?
What would happen to the demand for video
games if the price is reduced by 50%?
What would happen to the price of pizza if
tomatoes became scarce due to bug blight.
What would happen to the price of gasoline if
a synthetic source is discovered?
What would happen to the demand for
spearmint gum if research proves that each
gum stick increases I.Q.?
What would happen to the supply of
toothpaste if toothpaste workers go on
strike?
What would happen to the demand for in-line
skates if a new roller park opens in your
neighbourhood?
What would happen to the price of
hamburgers if too many beef cattle are
slaughtered?
What would happen to the supply of paper if a
huge brush fire destroys the western
forests?
Demand

The quantity of goods/services that a
consumer is willing to buy
Conditions that Create
Demand
1.
2.
3.
4.
Consumer is aware or interested in the
good or service
Ample supply of the good or service
available
Prices are reasonable and competitive
Good or service must be conveniently
located
Factors That Affect Demand
1.
2.
3.
4.
Change in the consumer’s income
Change in the consumer’s taste
Change in expectations of future
conditions
Change in population
Law of Demand

The higher the price, the lower the demand
 The lower the price, the higher the demand
e.g. When prices increases, less people buy it
Supply

The quantity of a goods/services that a
business is willing to produce
Conditions That Affect Supply

Change in the number of producers
 Price of related goods
 Change in technology
 Change in expectations
 Change in costs of production
Law of Supply

The higher the price, the higher the supply
 The lower the price, the lower the supply