Price – The Functions of Price, Equilibrium Point & Supply & Demand Diagrams

This detailed and engaging lesson covers the key theory behind price. This includes the functions of price, how price reflects value and how supply and demand diagrams help show price. The lesson looks at the equilibrium point and how excess demand or supply can change price. There are many examples of why the supply curve can shift. The lesson includes many tasks and activities throughout.

Main Aim:

Students will understand how price is determined through supply and demand and the equilibrium point. The lesson also covers the functions of price. The lesson covers the supply and demand diagrams and the theory behind excess demand and excess supply. The lesson includes many tasks and examples.