Indicator Explained

I.E.

SS.5.2.2.2k – identifies factors that change supply or demand for a product (e.g., supply: technology changes; demand: invention of new and substitute goods; supply or demand: climate and weather).

Essential vocabulary

supply - the quantity of resources, goods, or services that sellers offer at various prices at a particular time.

demand - the number of consumers willing and able to purchase a good or service at a given price.

substitute goods – products that can be used in place of other products to satisfy consumer wants.

specialization – a situation that occurs when individuals or businesses concentrate their efforts in the areas in which they have an advantage for increased productivity and profit.

scarcity – a situation that exists when there are not enough resources to meet human wants.

Examples from the colonial era:

Supply and technology changes:

  • The supply of ships built in New England increased because of access to plenty of forests and because the New England shipyards had the technology to make high-quality ships.

Demand and invention of new and substitute goods:

  • The introduction of a new type of tobacco to be grown in Jamestown led to an increased demand for tobacco in England.
  • The demand for homespun cloth as a substitute for English textiles grew as colonists boycotted fabric from England in protest of new taxes.

Supply or demand and climate and weather:

  • Because of the warm climate and long growing season, the southern colonies usually had a large supply of tobacco, rice, and indigo that they were able to sell for profit.
  • The severely cold winter of 1609-1610 increased the demand of settlers in Jamestown for food that was in short supply.
  • Because of the harsh climate and rocky soil in New England, there was little demand for farm laborers.

Suggestion: Have students look for and find other factors that change supply/demand during the colonial period.

Current examples:

Supply and technology changes:

  • Improved technology leads to a larger supply of hybrid vehicles for sale.
  • The development of windmills to harness wind energy increases the supply of electric power.

Demand and invention of new and substitute goods:

  • The invention of the new iPhone decreases demand for other types of phones and increases the demand for iPhones.

Supply or demand and climate and weather:

  • A mild summer without hailstorms or freezing weather increases the supply of wheat in Kansas.
  • An early freeze in Florida decreases the supply of oranges.
  • A long, cold winter increases the demand for heating oil.

Suggestion: Have students look through newspapers and magazines for other examples of factors that change supply/demand today.