Exploring Supply and Demand Concepts

The video tutorial introduces financial literacy, focusing on key concepts like supply, demand, and human capital. It uses the story of Freckles, a Boston Terrier, to illustrate these ideas. The tutorial explains supply as the amount of a resource or product available, and demand as the desire for that resource or product. Human capital is discussed in terms of education and experience that make individuals valuable to employers. Practical examples, such as Freckles' ice cream business, are used to demonstrate how supply and demand affect pricing. The video concludes with a summary of the concepts covered.

What does 'supply' refer to in financial terms?

• The demand for a product by consumers

• The amount of money in circulation

• The quantity of a product or resource available

• The cost of producing a product

What happens when the demand for a product is high?

• The supply automatically increases

• The price usually decreases

• The price usually increases

• More people start to ignore the product

What is 'human capital'?

• The skills, experience, and education that make an individual valuable to employers

• The physical assets a company owns

• The total stock of gold in a country

• The financial resources a person has

Which of the following is an example of human capital?

• A piece of land

• A college degree

• A large inheritance

• A collection of rare coins

How did Freckles' human capital help her get a job?

• By showcasing her financial wealth

• Through her relevant education and work experience

• By demonstrating her ability to work long hours

• Through her connections in the ice cream industry

What was Freckles' dream job?

• A professional athlete

• Assistant manager at Chico's Diner

• CEO of a tech company

• Manager of the Boston Terrier ice cream company

What educational qualification did Freckles have?

• A bachelor's degree in restaurant management

• A master's degree in finance

• A high school diploma

• No educational qualifications

If the supply of a product is low but demand is high, what is likely to happen to the price?

• The price will stay the same

• The price will increase

• The price will decrease

• The product will be discontinued

Freckles had 56 cups of ice cream but received 84 orders. How much greater was the demand than the supply?

• 84 cups

• 28 cups

• 140 cups

• 56 cups

What effect does high demand for a limited edition flavor likely have on its price?

• Makes it free

• Decreases the price

• Increases the price

• No effect