Supply and Demand

When something is rare (low supply) and popular (high demand), the price goes UP. When it's common and nobody wants it, the price goes DOWN. Why does this matter? Economic system patterns is a skill that will help you in school, in friendships, and in solving real-world problems. People who master this skill make better decisions and understand the world more clearly. Here's the process: Step 1 — Define the challenge. What exactly are you trying to figure out? Being specific about the question is half the battle. Step 2 — Gather information. What facts do you have? What might be missing? Not all information is equally useful — focus on what's relevant. Step 3 — Consider multiple options. Don't stop at your first idea. Challenge yourself to think of at least three alternatives. Often the best answer is one you didn't think of immediately. Step 4 — Evaluate your options. What are the pros and cons of each? What evidence supports each one? Which option has the strongest reasoning behind it? Step 5 — Make your choice and explain your reasoning. "I think ___ because ___" is the formula. Being able to explain your thinking is just as important as getting the right answer. Step 6 — Reflect. Was your approach effective? What would you do differently next time? This reflection step is how good thinkers become great thinkers.