Who are Producers?Think of something you would like to buy. Do

you know who makes it? Do you know its price? Buying, selling, and deciding on

prices are important ideas in ECONOMICS!

Today’s GOALTo identify the different kinds of producersExplain the relationship between SUPPLY

and DEMAND

Today’s lesson will focus on producers, what goods they make and sell, and what services they provide to consumers. It also explains the relationship between supply and demand in a free enterprise system.

Important VocabularyProducerConsumerSupplyDemand

Producers WORK!Goods are things that can be boughtA producer ______________ and ____________

goods.Producers work to provide good or services

for others to buy or use.Name some different producers!

Consumers Buy ThingsA consumer is someone who _________ the

goods or services sold by a ________________.Producers are also CONSUMERS…Can you

think of an example?

Producers SpecializeTo specialize in something means you do a

SPECIAL type of work.

Producers specialize so they can better meet the needs of people and what people want.

FREE ENTERPRISEWe have the RIGHT to make choices…Producers can run any business they want!Consumers can buy anything they want and

can afford!

What is Supply?Producers are free to __________ what they

want, and consumers are free to __________ what they want.

At high prices, producers At low prices, producers

make more things. make less things.

What is Demand?Demand is the amount consumers are willing

to ______ for a certain _____________.

Evaluate….

Do you think free enterprise is good for people? Why or why not? Be ready to discuss your

answer with the class.