Supply and Demand
What happens to the price when demand goes up?
The price increases.
What is a good?
Something you buy that you can keep, eat, or use.
What is a need?
Something you and your family must have in order to survive safely.
What is profit?
money that you earn by doing a job.
What is supply?
How much of a product you have.
What is a service?
Something that someone does for you that you pay for.
What is a want?
Something that you spend money on that you enjoy, but you do not need it to survive.
What is loss?
The money you lose in a business. When your costs are less than your income.
What happens when there is too much supply and not enough demand?
The price goes down. Things go on sale.
Name one good and one service you use every day.
Example:
Good- food
Service- your teacher!
Is a video game a need or a want? Why?
Want! You do not need it to survive.
If you sell lemonade for $1 and it costs you 50¢ to make, what is your profit?
50 cents.
Give an example of a product with high demand in the Summer.
Bathing suits, ice cream, beach towels, beach balls, etc.
Is a haircut a good or a service? Why?
Service! You pay the employee to cut your hair for you. You do not leave with anything that you can keep, eat or use.
List 3 needs and 3 wants.
Wants: Video games, make up, toys
What happens if your costs are more than your earnings?
You will lose money.
Explain how supply and demand affect prices at a lemonade stand.
If the supply is high and the demand is low, the price will go down
If the supply is low and the demand is high, the price will go up.
Think of a business that offers both a good and a service.
Car wash:
Service- cleaning your car
Good- air fresheners, cleaning products
Mother's Day is coming up so you buy your mom flowers. Is that a need or a want? Why?
A want! Your mother does not need flowers to survive.
If you buy cookie mix for 10$ and sell each cookie for 2$. How many cookies do you need to sell to make a profit?
5 cookies would be even
6 cookies would be making a profit