Supply and Demand WebQuest

During the WebQuest you will look at real world examples of when companies do not accurately predict what their customers demand. In turn, these companies lose money they could have made. You will also act as the owner of a company, adjusting the prices of your product to see how it impacts supply and demand. By the end of the WebQuest you should feel comfortable knowing how prices, supply and demand impact one another.

Before we start the webquest, let's have a quick review of what supply and demand are.

Demand is the desire, willingness, and ability to buy a good or service. A quick rule of thumb for demand is that people will be more willing to buy goods and services when the prices are low versus when the prices are high. Think about some of the last three things you purchased. Would you have bought those items or services if the price was higher? Would you have bought more of those items or services if the price was lower?

Supply refers to the various quantities of a good or service that producers are willing to sell at all possible market prices. The rule of thumb for supply is the opposite than that of demand. Suppliers would be more willing to sell more of their product if customers were buying them at higher prices versus lower prices. Think again about the last three things you purchased, but imagine you are the person selling them, rather than buying them. Would you be more willing to sell more of those items if the customer was buying them at a higher price or a lower price?

Lets take a look at some real world examples.

Click on the following links below and read the articles about how supply and demand impact the prices of goods.

As you read the articles, be thinking about our questions to consider.

In your article, does the demand not meet the supply or does the supply not meet the demand? How is this impacting the price of the good?

Article #1: College Football Tickets

http://www.espn.com/ncf/news/story?id=2286027