Sixth Grade
Worksheets
Supply and Demand at the Lemonade Stand
Have you ever wondered why certain things cost more than others? It's true that sellers decide on the prices of their products. But consumers also help determine prices. It depends on how much people want something (demand) and how much of that thing is available (supply).
Suppose you open a lemonade stand on a cloudy day. You begin selling your lemonade for 25 cents a glass. You get some customers, and you realize you are making a small profit. That is, you are able to pay for the costs of making the lemonade and have a little money left over.
Then the clouds disappear, the sun comes out, and it gets really hot. Now you have many, many customers. You decide to raise your price to 30 cents a glass. You will make more profit. A few people leave the line when they see the price increase, but there are still more people in line than you have lemonade.
