Case

Explain the law of supply.

Explain how the interaction of the demand for and supply of a commodity determines the market price of the commodity and the equilibrium quantity of the commodity that is produced and consumed.

Explain the law of demand.

Distinguish between changes in demand and changes in quantity demanded.

Distinguish between changes in supply and changes in quantity supplied.

SLP

Explain the law of demand.

Distinguish between changes in demand and changes in quantity demanded.

Discussion

Explain the law of demand.

Explain the law of supply.

The basics of supply and demand are at the root of economic thinking. As we studied earlier, economics is all about choices and tradeoffs-that is, deciding what we're willing to give up in order to get something else from someone else. Production is at the core of economic life, and the fact is, we can't produce enough stuff to satisfy all the wants of all the people (whether we could produce enough to satisfy their needs is another question but not one susceptible to economic analysis at this point). So there have to be ways of allocating things in all societies. Some use the free exchange pattern we called a market; others use various governmental or other kinds of allocating mechanisms; some use a combination of mechanisms depending on the situation, the commodities, and the consumers.