Goods vs. Services
This is something you can touch or hold.
A Good
This is something you must have to survive.
A need
A person who buys or uses goods and services.
A consumer
This is how much of something is available.
You buy a candy bar at the store. You are a…
Consumer
This is work someone does for you.
A service
This is something you would like to have but can live without.
A want
A person who makes or sells goods or services.
A producer
This is how much people want something.
Demand
A teacher getting paid for teaching is earning this.
Income
Getting a haircut is this type of economic activity.
A service
Food, water, and shelter are all examples of this.
Needs
A farmer growing corn is this.
If lots of people want something, demand does this.
A business makes too many products and can’t sell them. This means supply is…
High
Buying a backpack from Target is this type of economic activity.
A good
A new video game or designer shoes are examples of this.
Wants
You buying lunch at school makes you this.
A consumer
If there is not enough supply but high demand, prices will likely do this.
Increase/Go Up
People REALLY want a new toy, but there aren’t many available. This is…
High Demand and Low Supply
Name BOTH types of things people buy in an economy.
Goods and Services
Why are needs more important than wants?
They are necessary for survival
Can a person be BOTH a producer and a consumer? Explain.
Yes! For example, a teacher is a producer because they provide a service (teaching), but they are also a consumer when they buy coffee, groceries, or school supplies.
If supply is high but demand is low, what happens to prices?
Decrease/Go Down
A store lowers prices because no one is buying their products. This means demand is ____?
Low