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In this lesson, students act as buyers with a fixed amount to spend on beverages. They identify a favorite beverage from a list of beverages offered for the same price. They then react to changes in the price of that favorite beverage. Students use the data collected from this activity to describe the relationship between price and quantity demanded. They analyze other examples and learn that the relationship between price and quantity demanded holds for most goods, and that this relationship is called the law of demand.

Objectives of this lesson:
Students will be able to

define consumers and price,

describe the relationship between price and the amount people are willing and able to buy as the law of demand, and

analyze why the inverse relationship between price and the amount people are willing and able to buy exists.

Compelling Question:

Why do people buy more at lower prices and less at higher prices?

This lesson plan is designed for teaching grades 3, 4, and 5.

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In this lesson, students act as buyers with a fixed amount to spend on beverages. They will learn about the relationship between price and quantity demanded.

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Sunday Funday Read Aloud - Buy My Hats by Dave Horowitz | Storytime with Vade

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EconEdLink - The Supply and Demand of Toy Fads

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In this economics lesson, students will examine the market responses to two different toys.

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There's nothing better than getting lost among rows of market stalls when visiting a new city. Markets are an absolute must if you want to get to know the culture of a country. In them we can find all kinds of things: local food, clothing, handicrafts, fragrances, second-hand items... In this list of the largest markets in the world, we'll discover those where wandering through the endless stands is an adventure in and of itself!

Yiwu Market, China

If you think Chinese department stores are huge, wait until you see this! The Futian District market, or Yiwu Market, is the largest wholesale market in the world, with 5.5 million square meters of space that spans 7 kilometers. Most of the products of all the world's Chinese bazaars come out of this market, mainly gifts, toys, watches, accessories, clothing, decorative items and electronics, all wholesale. You would need several days to go through it all!

Central de Abastos, Mexico City

High on this list of the largest markets is the famous Central de Abastos of Mexico City (CEDA), the world's largest food market. Stalls are distributed over an area of 327 hectares, where you can find everything from food to rental cars.

In the CEDA you'll find people like bodegueros, chicas de carrito and diableros, loaders who use carts or dollies to transport goods throughout the market.

Grand Bazaar, Istanbul

The Grand Bazaar of Istanbul is one of the largest markets in the world, and also one of the most famous. It is located in the Old City, extends over 64 streets, and can be accessed through 22 different gates. Like most souks, the Grand Bazaar is organized into guilds, and therefore jewelers, furriers, hatters and other artisans all display their products in the same areas.

Its origins date back to the year 1455, when Mehmed II built an old bazaar next to his palace, around which artisan workshops were installed. Businesses began to proliferate, and later the streets were covered and a wall was built around it.

Tsukiji Market, Tokyo

Attention, sushi lovers! Want to know the best place in the world to eat this Japanese dish? Without a doubt, the area around Tsukiji market, the largest fish market in the world. It has more than 450 different species of seafood and fish, and an extensive history dating back to the 16th century.

One of the most interesting moments in the atmosphere of this Tokyo market is the tuna auction. Every day between 5 and 6:15 am, tonnes of tuna are put to auction. An exciting event to experience to see if you're an early bird!

Chatuchak Market, Bangkok

Another of the largest markets in the world is the Chatuchak Weekend Market in Bangkok. In its colossal space of 140,000 square meters, you can find pretty much anything: food, plants, handicrafts, furniture, art and even pets! Bargaining is typical in this market, so getting a good price is always possible if you know how to negotiate. Be sure to plan accordingly, however, as this market is only open on weekends and holidays.

While you're there, don't miss its restaurant section, where you can find Thai specialties and, of course, the famous insect snacks. Anyone want to try a delicious grilled scorpion?

Merkato, Addis Ababa

Merkato, also called Addis Merkato, is an open-air market located in the Addis Ketema district of Addis Ababa, the capital of Ethiopia. It is the largest open-air market in Africa, specializing in locally grown agricultural products such as coffee, root vegetables and spices.

Its origin dates back to the time of the Italian colonization of Ethiopia, between 1936 and 1947, which is why its name comes from the word mercato (market, in Italian). Today, it occupies an entire neighborhood of about 15 hectares.

Queen Victoria Market, Melbourne

The Queen Victoria Market occupies 7 hectares and is the largest market in the southern hemisphere. Impressive, right? It opened its doors in March 1898 and, thanks to the expansion of trade, it grew rapidly to become what it is now: one of Melbourne's major tourist attractions, and a hub of nightlife and culture. In fact, the Australian government is trying to have it declared a UNESCO World Heritage Site!

After this curated selection of spots, you have plenty of markets to keep in mind for your next trip. Of course, prepare a whole day because, remember, they are the largest markets in the world!

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Today we bring you a selection of the world's largest markets, where strolling through the rows of stalls is an adventure in and of itself!

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From herbs and spices to fresh seafood, rum cocktails and more, these fantastic food markets around the world are a treat for the senses. Wherever you're headed next, take a look at our list and see if there's a gourmet experience waiting for you at your destination. If you like trying local flavours, street markets also happen to be ripe for sampling weird food.

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Food Markets | Best Food Markets In The World

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Get your shopping feet on and your taste buds at the ready, this beautiful photo gallery showcases some of the best food markets in the world.

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TO MARKET TO MARKET Read Aloud Book for Kids

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What is Supply and Demand? Read Aloud by Reading Pioneers Academy

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👧🍋 It Began With Lemonade - Read Aloud Children's Book

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What Is the Law of Supply and Demand?

The law of supply and demand combines two fundamental economic principles describing how changes in the price of a resource, commodity, or product affect its supply and demand.

As the price increases, supply rises while demand declines. Conversely, as the price drops supply constricts while demand grows.

Levels of supply and demand for varying prices can be plotted on a graph as curves. The intersection of these curves marks the equilibrium, or market-clearing price at which demand equals supply, and represents the process of price discovery in the marketplace.

Understanding the Law of Supply and Demand

It may seem obvious that in any sale transaction the price satisfies both the buyer and the seller, matching supply with demand. The interactions between supply, demand, and price in a (more or less) free marketplace have been observed for thousands of years.

Many medieval thinkers, like modern day critics of market pricing for select commodities, distinguished between a "just" price based on costs and equitable returns and one at which the sale was in fact transacted. Our understanding of price as a signaling mechanism matching supply and demand is rooted in the work of Enlightenment economists who studied and summarized the relationship.

Importantly, supply and demand do not necessarily respond to price movements proportionally. The degree to which price changes affect the product's demand or supply is known as its price elasticity. Products with a high price elasticity of demand will see wider fluctuations in demand based on the price. In contrast, basic necessities will be relatively inelastic in price because people can't easily do without them, meaning demand will change less relative to changes in the price.

Price discovery based on supply and demand curves assumes a marketplace in which buyers and sellers are free to transact or not, depending on the price. Factors such as taxes and government regulation, the market power of suppliers, the availability of substitute goods, and economic cycles can all shift the supply or demand curves or alter their shapes. But so long as buyers and sellers retain agency, the commodities affected by these external factors remain subject to the fundamental forces of supply and demand. Now let's consider in turn how demand and supply respond to price changes.

The Law of Demand

The law of demand holds that demand for a product changes inversely to its price, all else being equal. In other words, the higher the price, the lower the level of demand.

Because buyers have finite resources, their spending on a given product or commodity is limited as well, so higher prices reduce the quantity demanded. Conversely, demand rises as the product becomes more affordable.

As a result, demand curves slope downward from left to right, as in the chart below. Changes in demand levels as a function of a product's price relative to buyers' income or resources are known as the income effect.

Naturally, there are exceptions. One is Giffen goods, typically low-priced staples also known as inferior goods. Inferior goods are those that see a drop in demand when incomes rise because consumers trade up to higher-quality products. But when the price of an inferior good rises and demand goes up because consumers use more of it in place of costlier alternatives, the substitution effect turns the product into a Giffen good.

At the opposite end of the income and wealth spectrum, Veblen goods are luxury goods that gain in value and consequently generate higher demand levels as they rise in price because the price of these luxury goods signals (and may even increase) the owner's status. Veblen goods are named for economist and sociologist Thorstein Veblen, who developed the concept and coined the term "conspicuous consumption" to describe it.

The Law of Supply

The law of supply relates price changes for a product with the quantity supplied. In contrast with the law of demand the law of supply relationship is direct, not inverse. The higher the price, the higher the quantity supplied. Lower prices mean reduced supply, all else held equal.

Higher prices give suppliers an incentive to supply more of the product or commodity, assuming their costs aren't increasing as much. Lower prices result in a cost squeeze that curbs supply. As a result, supply slopes are upwardly sloping from left to right.

As with demand, supply constraints may limit the price elasticity of supply for a product, while supply shocks may cause a disproportionate price change for an essential commodity.

Equilibrium Price

Also called a market-clearing price, the equilibrium price is the price at which demand matches supply, producing a market equilibrium acceptable to buyers and sellers.

At the point where an upward-sloping supply curve and a downward-sloping demand curve intersect, supply and demand in terms of the quantity of the goods are balanced, leaving no surplus supply or unmet demand. The level of the market-clearing price depends on the shape and position of the respective supply and demand curves, which are influenced by numerous factors.

Factors Affecting Supply

In industries where suppliers are not willing to lose money, supply will tend to decline toward zero at product prices below production costs.

Price elasticity will also depend on the number of sellers, their aggregate productive capacity, how easily it can be lowered or increased, and the industry's competitive dynamics. Taxes and regulations may matter as well.

Factors Affecting Demand

Consumer income, preferences, and willingness to substitute one product for another are among the most important determinants of demand.

Consumer preferences will depend, in part, on a product's market penetration, since the marginal utility of goods diminishes as the quantity owned increases. The first car is more life-altering than the fifth addition to the fleet; the living-room TV more useful than the fourth one for the garage.

What Is a Simple Explanation of the Law of Supply and Demand?

Why Is the Law of Supply and Demand Important?

What Is an Example of the Law of Supply and Demand?

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Law of Supply and Demand in Economics: How It Works

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The law of supply and demand explains how changes in a product's market price relate to its supply and demand.