Economic Principles and Concepts

This video tutorial introduces third-grade students to the concepts of supply and demand within the free enterprise system. It explains how supply and demand affect the prices of goods and services, using examples like video games and toilet paper during the pandemic. The tutorial covers the basic laws of supply and demand, market equilibrium, and scarcity. It also includes a review of key vocabulary and an assessment to test understanding.

What is an example of a service?

• A banana

• A book

• A haircut

• A video game

What happens to the quantity supplied when a producer can sell a product at a higher price?

• It decreases

• It increases

• It becomes zero

• It stays the same

What happens to the quantity demanded when a product becomes more expensive?

• It decreases

• It increases

• It stays the same

• It becomes zero

What is the term for the price where supply equals demand?

• Surplus

• Inflation

• Equilibrium

• Deficit

What is an example of scarcity?

• Surplus of cars

• Limited toilet paper

• Excessive video games

• Abundant apples

What happens to prices when there is high demand and low supply?

• Prices become unpredictable

• Prices decrease

• Prices remain constant

• Prices increase

What is the effect of low demand and high supply on prices?

• Prices decrease

• Prices increase

• Prices remain constant

• Prices become volatile

According to the laws of supply and demand, what happens if supply increases and demand stays the same?

• Prices go up

• Prices go down

• Prices fluctuate

• Prices remain unchanged

What is the free enterprise system?

• A system where businesses set prices based on supply and demand

• A system where prices are random

• A system where the government sets prices

• A system where prices are fixed

What is the definition of demand?

• The quality of a product

• The price of a product

• The amount of product people want to buy

• The amount of product available for purchase