Remember: A price settles where the number wanted meets the number offered. A shortage pushes it up, and a surplus pushes it down.
Read and answer
Read the story first, then answer.
Juno's scarf stallAt Quill market, Juno sells hand-knitted scarves at a stall and wonders what price is fair for everyone. Two things settle a price. Demand is how many people want a scarf at a price. Supply is how many scarves knitters make at that price. At two coins, ten people wanted a scarf but only two were made, so eight people went home empty-handed. That is a shortage. At ten coins, ten scarves were made but only two people wanted one, so eight scarves sat unsold. That is a surplus. Juno wrote a table with each price, how many wanted one and how many were made. At six coins, six people wanted a scarf and six were made. Nobody was left out and no scarf was spare, and that is the market price. Then a cold snap hit Quill, and at every price four more people wanted a scarf. Six coins meant a shortage again: ten wanted one but only six were made. So the price rose, more knitters joined, and the two sides met at eight coins.
1
Look at the table. At which price do the same number of people want a scarf as scarves are made?
8 coins4 coins6 coins
2
Join each market to what it is.
14 coins: 8 want one, 4 are made
28 coins: 4 want one, 8 are made
36 coins: 6 want one, 6 are made
Aa shortage
Bthe market price
Ca surplus
3
Eight scarves sit unsold. What will Juno do with the price tag?
Lower itRaise itKeep it the same
4
Look at the graph. When the price goes up, what happens to the number of people who want a scarf?
More people want oneFewer people want oneThe same number want one
5
Which things can push a price up? Circle every one.
A long queue of buyersUnsold scarves piling upA cold snap that makes people want warm scarvesA surplus
After the cold snap
6
After the cold snap, 4 more people want a scarf at every price. At 6 coins, people want one.
7
At 6 coins, 10 people want a scarf and 6 are made. people go without.
8
Number what happens after the cold snap.
At six coins, ten want one but only six are made
Four more people want a scarf at every price
The two sides meet at eight coins
The price rises and more knitters join
9
Kit says: Juno sets the market price all by herself. Is Kit right?
YesNo
10
Write one question you would ask a grown-up about a price that changed at a shop or a fair.
11
Draw a scarf price tag going down, next to a pile of unsold scarves.
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Answer key · Set A
Supply and demand
16 coins At 6 coins, 6 people want one and 6 are made. Nobody is left out and no scarf is spare: that is the market price.
21-A, 2-C, 3-B More wanted than made is a shortage. More made than wanted is a surplus. Equal numbers are the market price.
3Lower it Unsold scarves pile up when the price is too high, so the tag comes down.
4Fewer people want one At 2 coins ten people want one, but at 10 coins only two do. A higher price makes fewer people want one.
5A long queue of buyers, A cold snap that makes people want warm scarves Many people wanting one pushes a price up. Unsold scarves and a surplus push a price down.
610 6 + 4 = 10 people. Only 6 scarves are made, so it is a shortage.
74 10 − 6 = 4 people go home without one.
82, 1, 4, 3 The snap makes more people want scarves, six coins becomes a shortage, the price rises, and wanting and making meet at eight coins.
9No Nobody decides. Wanting and making together find the price, and Juno only moves her tag when buyers queue or scarves pile up.
10Your own words: a grown-up reads it.
Mark each answer, count the right ones and write the score on the sheet.