Supply and Demand: Price of Goods and Services
About the Supply and Demand: Price of Goods and Services Lesson
The students explain how supply and demand affect the price of goods and Services.
• The students understand the concept of an economic system.
1. Teacher writes the words ?supply?, ?price? and ?demand? on the board for the students to write in their journals and then write the definition for each word Supply: the amount of an item [good or product] that the store has in stock [in their store presently in their inventory]
Demand: the amount of people who want to purchase the item/good/product
Price: the amount of money the item/good/product costs.
2. The teacher explains that when a store has only a small amount of a particular product that people want [demand], then that product will generally cost more due to the lack of supply and high demand. The teacher gives the example of the electronic/technological game system, the PS3, when it was introduced into stores last year during the holidays.