Lesson 3 of 84 · Economics
⭐ 30 XP⚓ Market PortSupply and Demand
Supply and demand are fundamental concepts in economics that describe how prices are determined in a market.
🎯 Your mission
Spot the cost behind the price.
⚡ The twist
Trade isn't just stuff — it's ideas, words, and germs.
Mind = Blown
🤯 The first stock exchange was in Amsterdam in 1602 — for spices.
Then & Now
💱 Every receipt you've ever seen has this idea inside it.
Supply and demand are fundamental concepts in economics that describe how prices are determined in a market. Supply refers to the quantity of a product that producers are willing to sell at different prices, while demand represents the quantity that consumers are willing to purchase. When demand for a product increases and supply remains constant, prices tend to rise. Conversely, if supply exceeds demand, prices may fall, illustrating the delicate balance that governs economic exchanges.
Key Facts
When demand rises, prices generally increase if supply remains unchanged.
Supply is how much of a good or service producers are willing to sell.
Demand is how much of a good or service consumers are willing to buy.
Check Your Understanding
Question 1
1 of 2What happens to prices when demand increases and supply remains constant?
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.
Track every dollar you spend or get this week. Then figure out the pattern.
For the dinner table
“If you had $20 to start a business, what would you sell?”
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