Understanding Economy

• Price – is the amount of money given or asked for when goods and services are bought or sold.

What is Price?

• Supply – the amount of goods and services that producers will provide at various prices.

Supply

If consumers are willing to pay more

for a good or service

Then sellers are willing to supply more of that

good or service

• Demand – is the amount or quantity of goods and services that consumers are willing to buy at various prices.

Demand

Consumers are willing to consume more of a good or service at a

lower price

Equilibrium Price

• Equilibrium Point/Price – is the point at which the quantity demanded and the quantity supplied meet.

The Lemonade Stand

http://www.primarygames.com/socstudies/lemonade/start.htm

How well can you balance supply and demand?

Ms. Mahoney’s final profit =

$107.45!