Supply and Demand Webquest
Navigate this webquest and complete the tasks that go along with it. Before moving on, make sure to read the "questions to consider" below.
Questions to Consider
As you conduct the webquest, consider the following.
- What happens to the supply of a product when the price is set low?
- What happens to the demand of a product when the price is set low?
- What happens to the supply of a product when the price is set high?
- What happens to the demand of a product when the price is set high?
- What happens to the price of a good when supply does not meet the demand?
- What happens to the price of a good when demand does not meet the supply?
During the webquest you will look at real world examples of when companies do not accurately predict what their customers demand. In turn, these companies lose money they could have made. You will also act as the owner of a company, adjusting the prices of your product to see how it impacts supply and demand. By the end of the webquest you should feel comfortable knowing how prices, supply and demand impact one another.
Could you have saved those companies money by giving them advice on supply and demand?
If you were the owner of a company, would you feel comfortable setting the prices that satisfy both supply and demand?
Before we start the webquest, let's have a quick review of what supply and demand are.
Demand
The desire, willingness, and ability to buy a good or service. A quick rule of thumb for demand is that people will be more willing to buy goods and services when the prices are low versus when the prices are high.
Think about some of the last three things you purchased. Would you have bought those items or services if the price was higher? Would you have bought more of those items or services if the price was lower?
Supply
The various quantities of a good or service that producers are willing to sell at all possible market prices. The rule of thumb for supply is the opposite than that of demand. Suppliers would be more willing to sell more of their product if customers were buying them at higher prices versus lower prices.
Think again about the last three things you purchased, but imagine you are the person selling them, rather than buying them. Would you be more willing to sell more of those items if the customer was buying them at a higher price or a lower price?
Lets take a look at some real world examples.
Click on a ONE of the following links below and read the article about how supply and demand impact the prices of goods.
As you read the articles, be thinking about our questions to consider.
In your article, does the demand not meet the supply or does the supply not meet the demand?
How is this impacting the price of the good?
Click on a ONE of the following links below and read the article about how supply and demand impact the prices of goods.
As you read the articles, be thinking about our questions to consider.
In your article, does the demand not meet the supply or does the supply not meet the demand?
How is this impacting the price of the good?
For this activity you will act as the owner of a lemonade stand.
In the game, you will purchase the lemons, ice, sugar and cups and create the prices for the lemonade you are selling.
Be careful! You do not want to buy too many supplies because they could spoil. At the same time, you do not want to run out of supplies before your customers are done buying your lemonade.
Also, be sure to keep an eye out on the weather and how much money you have. Both should impact the amount of supplies you buy.
While playing the game, the first few days make sure you try putting the price of lemonade very high and very low. By the end, try to come up with a price that is fair for you and fair for the customers.
Be sure to click "7 Days" when you open the game. Also, click the red button in the bottom right hand corner of the game that says "fast forward" to make the game go by more quickly.
In the game, you will purchase the lemons, ice, sugar and cups and create the prices for the lemonade you are selling.
Be careful! You do not want to buy too many supplies because they could spoil. At the same time, you do not want to run out of supplies before your customers are done buying your lemonade.
Also, be sure to keep an eye out on the weather and how much money you have. Both should impact the amount of supplies you buy.
While playing the game, the first few days make sure you try putting the price of lemonade very high and very low. By the end, try to come up with a price that is fair for you and fair for the customers.
Be sure to click "7 Days" when you open the game. Also, click the red button in the bottom right hand corner of the game that says "fast forward" to make the game go by more quickly.