Supply and demand

High school (ages 12+)
Mathematics & Numbers

Name:

Date:

Step 1 · Read the article

Open the article and read it at the level above. Then answer the questions below in your own words.

https://smallwhale.org/articles/supply-and-demand

Write what each word means, using the article.

Do not copy the article. Write two things you learned, the way you would explain them to a friend.

Answers below are taken from the article’s stored facts, so they match what the student read.

1. What is the theoretical framework?Microeconomic model explaining price determination in a market economy
2. What is the key determinants of supply?Production costs, technology, number of sellers, and expectations
3. Why do prices change when there are too many or too few items?If there are more items than people want, sellers lower prices to sell them. If there are fewer items than people want, sellers can raise prices because people are willing to pay more.
4. How does the market find the right price?The market keeps adjusting prices until the amount people want to buy equals the amount sellers offer. This balance is called the equilibrium price.

Market Equilibrium: The point where the quantity of a good supplied equals the quantity demanded, establishing the market price.
Surplus: A situation where the quantity supplied exceeds the quantity demanded, typically leading to price decreases.
Shortage: A situation where the quantity demanded exceeds the quantity supplied, typically leading to price increases.