Title: (Optional) Describe the effect of supply and demand on a free enterprise system.
Course: Principles of Business and Marketing (12051-18) > Section: Understanding the Role of Economics in a Global Economy

Description should include examination of the relationships among supply, the law of supply, demand, the law of demand, economic equilibrium, and the

- effects of shortages and surpluses on the economy (e.g., buyers’ vs. sellers’ market)
- effects of changes in supply and/or demand on equilibrium
- dollar vote, as related to supply and demand.

Process/Skill Questions:

- How is price affected by supply?
- How is price affected by demand?
- What current trends in industry affect supply and demand in our economy?
- How might a shortage of a good or service be beneficial to the economy?
- How might a surplus of a good or service be detrimental to the economy?
- What is a price ceiling? How does it affect supply and demand?
- What is a price floor? How does it affect supply and demand?
- What is the effect of substitutes on supply and demand?