Pearl Exchange Activity Full - Demand and Supply

The video tutorial introduces the concept of a free market where buyers and sellers negotiate to reach mutually beneficial agreements. It explains consumer and producer surplus, illustrating how these concepts apply in real-world transactions. The tutorial includes an interactive activity where students practice negotiation skills, simulating market conditions and observing how supply and demand affect prices. Through this exercise, students learn the importance of understanding market dynamics and the role of negotiation in achieving favorable outcomes.

How does consumer surplus change when a buyer pays less than their maximum willingness to pay?

What is the significance of understanding both consumer and producer surplus in a market?

What role do negotiation skills play in achieving a successful transaction?

In what ways can external factors, like a virus affecting oysters, impact market prices?