Question

In three to five sentences explain how the relationship between supply and demand affects consumers 5th grade level

Answer 1

Supply and demand are like a see-saw. When there is a lot of something for sale (high supply) and not many people want it (low demand), prices usually go down. But when many people want something (high demand) and there isn’t much of it available (low supply), prices go up. This means that consumers may pay less for things when they are easy to find and more when they are hard to find. So, supply and demand help decide how much things cost at the store!