Discussion Questions for Supply vs Demand in Economics
Question 1: What Factors Influence Demand?
- Prompt: Consider the various factors that can influence the demand for a product. Discuss how changes in consumer preferences, income levels, and the price of substitutes can affect demand.
- Follow-up: How might a sudden increase in consumer income change the demand for luxury goods?
Question 2: How Does Supply Respond to Market Changes?
- Prompt: Explore the concept of supply and how it can be affected by factors such as production costs, technology, and the number of suppliers in the market.
- Follow-up: What might happen to the supply of electric cars if there is a significant drop in the cost of battery production?
Question 3: The Interaction of Supply and Demand
- Prompt: Analyze what happens when the supply of a product exceeds demand, or vice versa. Discuss the concepts of market equilibrium, surplus, and shortage.
- Follow-up: What are the potential consequences for businesses and consumers if a product consistently is in surplus in the market?
These questions aim to encourage critical thinking and discussion about the fundamental concepts of supply and demand within the context of real-world economics.