Lesson 3 of 84 · Economics
⭐ 30 XP⚓ Market PortSupply and Demand
Supply and demand are fundamental concepts in economics that describe how the market works.
🎯 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 describe how the market works. Supply refers to the quantity of a product or service that producers are willing to sell at various prices, while demand refers to how much of a product or service consumers are willing to purchase at different price points. When demand for a product exceeds its supply, prices tend to rise; conversely, when supply outstrips demand, prices usually fall. This relationship helps to determine the market equilibrium, where the quantity supplied equals the quantity demanded.
Key Facts
Supply increases as prices rise, while demand decreases.
When demand exceeds supply, prices tend to increase.
Market equilibrium occurs when supply equals demand.
Check Your Understanding
Question 1
1 of 2What happens when demand for a product exceeds its 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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