Suggested Money Lesson Plan
for this Worksheet
Explain to students the concept of Supply and
Demand.
Supply is
the quantity of goods that a supplier has available to sell. Goods
supplied will vary depending on such factors including price, availability, and
time required for manufacture. In general, the higher the price, the
greater the quantity of goods a supplier is willing to supply.
Demand
is the amount of goods that consumers are willing to purchase. Consumers
normally want more goods at a lower price, and less goods at a higher price.
If supply is
greater than demand, then the producer of those goods lose since they
produced too many items which are not selling. This increases their costs.
If supply is less than demand, then the consumer may be unhappy since
they can not get the product they want. This may make the consumer unhappy
with the supplier.
The best scenario is when supply equals demand,
also called equilibrium. This occurs at the price where supply and
demand are equal.
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