Lesson 35 of 84 · Economics
⭐ 30 XP⚓ Market PortSupply and Demand
Supply and demand are fundamental concepts in economics that help us understand how prices are determined.
🎯 Your mission
Follow the money. Then follow the choices.
⚡ The twist
Money is just a story everyone agrees to believe.
Mind = Blown
🤯 Money used to be made of cocoa beans, salt, and even giant stones.
Then & Now
💱 This is happening in your local store every single day.
Supply and demand are fundamental concepts in economics that help us understand how prices are determined. Supply refers to how much of a good is available for sale, while demand refers to how much of that good people want to buy. When there is a high demand for a product and not enough supply, the price tends to rise. Conversely, if there is a lot of supply and not enough demand, prices tend to fall, making it crucial for businesses to find a balance.
Key Facts
Supply is how much of a good is available for sale.
Demand is how much people want to buy a good.
Balancing supply and demand helps set prices.
Check Your Understanding
Question 1
1 of 2What happens to prices when there is high demand and low supply?
Why this still matters
The next time you spend $1, ask: who else benefited besides you?
Stretch Challenge
Try this in real life this week.
Find two products that look similar but cost very different. Why?
For the dinner table
“If you had $20 to start a business, what would you sell?”
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