π Topic Summary
Imagine a seesaw. On one side, you have 'supply,' which is how much of something is available. On the other side, you have 'demand,' which is how much people want that thing. When demand is high but supply is low (lots of people want it, but there isn't much of it), the price usually goes up. When supply is high but demand is low (there's lots of it, but not many people want it), the price usually goes down. This balance between supply and demand affects the prices and availability of almost everything we buy!
π° Part A: Vocabulary
Match the terms with their definitions:
- Supply
- Demand
- Scarcity
- Price
- Surplus
- The amount of something people want to buy.
- When there is more of something than people want.
- The amount of something available.
- How much something costs.
- When there is not enough of something to meet demand.
π Part B: Fill in the Blanks
Complete the paragraph using the words from the word bank: higher, lower, demand, supply, price.
When the ______ for a product is high, and the ______ is low, the ______ will usually be ______. Conversely, if the supply is high and the demand is low, the price will likely be ______.
π‘ Part C: Critical Thinking
Think about your favorite snack. Has the price of it changed recently? Why do you think that might be? Explain how supply and demand might be affecting the price or availability of your favorite snack.