Title: Describe the relationship between supply and demand and its effects on price.
Course: Marketing (12164) > Section: Pricing Products and Services

Description should include definitions of supply and demand and give the ways supply and demand interact to determine price:

- When supply is up and demand is down, price decreases.
- When supply is down and demand is up, price increases.

Description should also include various factors that can affect supply and demand, such as

- resources
- natural and economic events
- government intervention
- technology
- price
- elastic and inelastic demand.

Process/Skill Questions:

- What current trends in industry will affect the present supply and demand in our economy?
- What is the difference between elastic demand and inelastic demand? Which types of products have elastic demands? Which products have inelastic demands?
- How does surplus affect prices?
- When is equilibrium achieved in terms of supply and demand?