Supply and Demand

Graphing and Analysis

Alternatives and Opportunity Cost

Alternatives are the options available when deciding on utilizing the resource.

Opportunity cost is the 2^nd BEST ALTERNATIVE

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Example- pick one game from the list:

• FIFA 25
• Madden NFL
• EA Sports UFC
• NBA 2K25
• Tony Hawk Pro

Demand

• Demand: The willingness and ability of consumers to buy a product at a particular place and time.
• Relationship between the price of a good and the quantity that consumers are willing and able to buy.
• The Law of Demand states that when the (selling) price of an item decreases the quantity demanded increases.

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Demand Schedule

• Demand schedule- table that lists the various quantities of a product or service that someone is willing to buy over a range of a prices
• Elements of demand schedule:
• One column = price
• One column = demand

Demand Schedule

Price per Liter Quantity Demanded

$2.00 50

$1.75 60

$1.50 75

$1.25 95

$1.00 120

The Law of Demand states that when the (selling) price of an item decreases the quantity demanded increases.

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Demand Chart

Demand Elasticity

• Elasticity denotes how much a price change effects the QD.
• Elastic=great effect
• Inelastic=small effect

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• Factors Influencing Elasticity
• Necessities
• Availability of substitutes
• Cost of items
• Ability to delay

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Supply

• The amount of a product producers are willing and able to produce at a certain price.

Supply Schedule

Price per Liter Quantity Supplied

$2.00 150

$1.75 120

$1.50 90

$1.25 70

$1.00 45

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The Law of Supply states that when the (selling) price of an item increases the quantity supplied will increase.

Supply Chart

�Demand and Supply Schedule�SchulMart T-Shirts�

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Price QD QS

$10.00 190 30

$15.00 175 80

$20.00 125 125

$25.00 85 150

$30.00 65 170

$35.00 50 185

Supply and Demand Schedule�Chacos

Price QD QS

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$55.00 500 280

$65.00 460 310

$75.00 380 355

$85.00 310 395

$95.00 275 440

$105.00 245 500

Surplus and Shortage