Have you ever wondered why Apple decided to sell their iPad for $500? Why does an Aston Martin cost about $189,000 and a Toyota corolla cost about $15,000? Why did the price of a flat screen television drop significantly since it was first introduced in the market? Who decides the price of a product and how?
The price of goods and services are explained through the laws of supply and demand, which are one of the most important concepts of economics. They can be used to explain how producers decide on the price for their product and why consumers are willing to pay that price. In the free competitive market, prices determine how much the producers are willing to supply and the consumers are willing to purchase.
This WebQuest will help you to understand more about the concepts of supply, demand, equilibrium, and price. You will also learn what causes a shift in supply and demand of a product and how it affects the price. You will then utilize what you have learned on this WebQuest, and design a product that you will sell to your peers. You will demonstrate your understanding of the laws of supply and demand by being a successful producer.