EQ: What factors impact Supply and Demand?
LT: I can explain the relationship between supply and demand.
SC: I can assess variables impacting supply and demand for a Lemonade Stand.
DO NOW
Cornell Notes
VOCABULARY: Supply + Demand |
Let's assume you live in a small town where nobody sells bananas in other words zero supply now let's also assume that the people who live there would love to eat bananas in other words there's a decent demand for bananas as we can see there is currently an imbalance people want bananas but there are no sellers Peter understands this and starts selling bananas at the beginning his profits will be huge because lots of people want bananas and he's the only one who has them as time passes however sorrow will bananas yourself this increases the supply of bananas and diminishes Peters profit potential the more people start
selling bananas the more supply there will be if too many people end up selling bananas but the demand doesn't increase as well there will be too much supply and some of them will go out of business eventually some kind of a balance tends to be reached |