Supply and Demand

What Are Supply and Demand?

Buying and selling
things is based on supply
and demand. Supply is
the amount of goods and
services there are to buy.
Demand is how many
people want to buy those
goods and services.

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Big and Small Supply
Supply can be big,
small, or in between.
A big supply allows people
to buy a large amount
or pick from many choices.
A small supply means people
can't buy as much or must
pick from fewer choices.

High and Low Demand

Demand can be high
or low. Demand is high
when many people want
to buy the same thing.
Demand is low when few
people want to buy the
same thing.

PebbleGo Database. Copyright © 2020 Capstone Digital. Permission is granted for classroom use.
Prices
Supply and demand make
prices go up and down.
People pay more for
items with a small supply
and a high demand.
Stores lower prices on
items with a high supply
and a low demand.

Balancing Supply and Demand

Stores try to balance
supply and demand.
They decide how much they
can sell to their customers.
If their supply is too small,
they may run out. If their
supply is too big, they may
have to lower prices.

PebbleGo Database. Copyright © 2020 Capstone Digital. Permission is granted for classroom use.
Glossary Terms
balance - staying steady and not favoring one side or
the other

customer - a person who buys goods or services

good - something that can be bought or sold

choice - picking or selecting from several things

price - how much money a person pays for something

service - work that helps others

“Supply and Demand.” Social Studies. Capstone, www.pebblego.com.
Accessed 13 Mar. 2020.

PebbleGo Database. Copyright © 2020 Capstone Digital. Permission is granted for classroom use.