Supply+&+Demand+B

The laws of **SUPPLY** and **DEMAND** 1. The cheaper the **price** the more **goods** and **services** consumers will want to **purchase.** 2. The **higher** the price the **less** goods and **services producers** will want to supply.

Business only exist to make **money**!

If a business is not making a **profit** they will ceased to provide that good or service.

The **equilibrium price** is called the "perfect price" as all **buyers** who want to purchase a good or service can do so, and all **sellers** who make or provide a good or service can find someone to buy their goods or services. There are no shortages (unsatisfied consumers) or surpluses (unsold production).

If there are a lot of competitors in the market (an oversupply is likely) p**roduction** will **decrease** as prices will be **forced** down as consumers will look for the cheapest suppliers.

If there is only one supplier in the market **consumers** will be at a disadvantage as the producer can set their own price. This situation is known as a monopoly.

Consumers have a lot of power in the market place. They can vote with the dollars they spend to determine which **goods** and **services** are produced. Businesses will not continue to supply goods and services which make them a **loss.

Rachel, Donna, Amina, Abdul, Mohammed**

Find out the meaning of the following words and give an example of each:
Monopoly

Duopoly **an economic situation in which two powerful groups or organizations dominate commerce in one business market or commodity //for example//** Substitute Good or service **one product for the other //for example coffee and tea//** Complementary Good or Service **Products which go together //Jam and butter//** Inflation **an increase in price //for example meat going higher in price due to the amount of water farmers have.//** Hyperinflation **very high, rapid monetary inflation that is great enough to threaten a nation's economic stabilty**