Lesson 3 of 84 · Economics
⭐ 30 XP⚓ Market PortSupply and Demand
Supply and demand are two important concepts in economics.
🎯 Your mission
Trade-offs everywhere — find them.
⚡ The twist
Cheap for you usually means expensive for someone else.
Mind = Blown
🤯 The first ATM was installed in 1967 — and used radioactive ink.
Then & Now
💱 This is happening in your local store every single day.
Supply and demand are two important concepts in economics. Supply refers to how much of a product or service is available, while demand is how much people want that product or service. When the supply of an item is high and the demand is low, prices usually go down. Conversely, when demand is high and supply is low, prices tend to go up. Understanding supply and demand helps us see how prices change in the market.
Key Facts
Supply is how much of a product is available.
Demand is how much people want a product.
Prices can rise when demand is greater than supply.
Check Your Understanding
Question 1
1 of 2What does 'supply' refer to in economics?
Why this still matters
The next time you spend $1, ask: who else benefited besides you?
Stretch Challenge
Try this in real life this week.
Find two products that look similar but cost very different. Why?
For the dinner table
“If you had $20 to start a business, what would you sell?”
Next Smart Lesson
We'll pick a lesson that matches exactly where your understanding is right now.
Share this lesson
Send it to a parent looking for a 5-minute “why does that matter?” conversation starter.