sbl: series 1 the story of supply & demand

Story Based Learning S.B.L.

• S.B.L. Series 1

• Topic: Understanding basics of Supply & Demand

• Age Group : 9 Years to 14 Years – (Classes 5th to 9th Standard)

• Aim: – To make children understand why certain things are expensive and

other things cheap ,why prices keep changing with seasons and what factors affect these prices and how.

– This is done through a story about two characters.

– Roles can be played by children themselves while they read out the dialogues.

– A moderator would be required to make them understand the precise definitions at the end when they are more comfortable with the event.

Flow of the S.B.L. Activity

• 2 Children take up the roles of the characters and read out their respective dialogues

• A senior moderator narrates the scene and helps them understand what is happening.

• At the end of the Story…

– The Definition Section(Terms they Understood with fun !)

• Supply

• Demand

• Buyer

• Seller

• Market

– Each scene is followed by a small flow chart through which the moderator explains what is happening

Character Role

Play

All

Kids

Understand

Concepts

START !

The Story Of SUPPLY

Story Characters Mr. Margo Fruit Vendor

As BUYER As SELLER

Mr. Margo Fruit Vendor

As BUYER

As SELLER

Demand: To buy Mangoes :1-2kg Oranges :6 -12 For myself and family

Supply : To sell Mangoes :7kg Oranges:8kg Grapes :1 Crate Bananas :6 Dozens To customers

SUPPLY

One fine day…………..

Mr. Margo

Mr. Margo

This Summer I would eat even

more mangoes than the last one

Lets get ready and buy some mangoes from the “The Fruit Market”

The Fruit Market

Finally I have reached my favorite

place the Mango market

I cant stop myself picking up one

!!!@!!!

1-2 kg of Alphonso Mangoes

6 to 12 Oranges

My Demand

Supply : To sell Mangoes :7kg Oranges:8kg Grapes :1 Crate Bananas :6 Dozens Small quantity of other fruits to customers

Supply with me to sell to

customers .

Special price for you Sirji its Rs 110/kg,

How much for the Alphonso mango

brother !!

Hey brother Rs 110/kg is too much !!,I am a

regular visitor, I know the prices , I will buy

2kg ,so come down to Rs 90/kg , if you want

to ….

Sirji !, the stock has just

entered the market , the SUPPLY is less but the DEMAND is very

high !

Why are these mangoes so expensive

??? I wanted to have lots

and lots of these

Every summer the same thing happens

,whenever Alphonsos enter the market their

price is sky high!!!

But Why????

SUPPLY Less

DEMAND High

HIGH PRICE !!

=

I got it !! Since less mangoes are

avilable but mango eaters are more … That is why

the alphonso mangoes are so expensive

Rs110/kg

Ok Ok !!

Give me 1 kg of mangoes

*-_-*

Sure Sirji!,here are your mangoes!

Anything else for you

Sirji! , buy some Oranges or Grapes ,they are the nice

ones and good fresh as well!!

Very Fresh Sirji!! ,they are the

Nagpur oranges, Special price for you

Rs 25/dozen Only

How much are these oranges

for??, they don’t look that fresh

Great !! Oranges have now come down to Rs 25, it has been a

month or so that they have come into the market, last time I

bought them it was Rs 40/dozen

So now rates of Oranges have come

down !!! But

how and why ???

SUPPLY Enough

DEMAND Moderate

LOW PRICE !!

=

I got it !! Since there is enough supply of oranges available

and demand for them is moderate ,the price

has come down !!

Don’t you worry Sirji!! ,You are my valued customer I will give YOU the best out of

best!! And keep visiting for

Fresh and Nice Fruits !!!

Give me Six oranges , but see to it that they are the

best ones ,you know I am a

regular buyer, I know about the

quality!!

So I had great day !!! Shoping my favourite

Fruit The Mangoes!!!

And learnt so much about price rise and fall

!!

I guess I can predict that after a fortnight

The alphonsos will come down to a price

Like Rs 60-Rs70 /kg

Lets see what happens

My DEMAND for

mangoes and Oranges was fulfilled

!!

Supply of fruits with me

was sold to Mr.Margo my

customer

What happened to the demand ?

What

happened to

the supply ?

10-12 days later…………..

The Fruit Market

The Fruit Market

I am fine and fruit hungary so how are the mangoes these

days ??

How are you Sirji!!

Come come !! I have lots of fresh

fruits today!!

Ha Ha Ha !!!!! So I was right …… Pack a Kg for me

brother

Just arrived !!

Very fresh Alphonsos! Only Rs 70/kg

How many kgs shall I pack for you

Sirji!!

Exactly as I thought the prices have come down now for the mangoes ,

and this time

I know why !!

SUPPLY Good Enough

DEMAND Good

LOW PRICE !!

=

I got it !! Since there is enough supply of Alphonso Mangoes

available and demand for them is good ,the price has

come down Comparitively !!

Now The Oranges

No thanks This time just want to relish the

Mangoes ..

Sir your mangoes are ready

Would you like Oranges as well !!

They are very cheap now

Rs 15 /dozen only, there is ample supply of

ORANGES !!

SUPPLY Good

DEMAND Less

VERY LOW PRICE !!

=

I got it !! Since there is enough supply of

oranges available but demand for them has fallen ,the price has

come down Heavily !!

Yes I Got It All!!

SUPPLY

But there is more …Please move

ahead

Supply and Demand

The terms supply and demand The terms supply and demand

refer to the refer to the behaviourbehaviour of of

people......as they interact people......as they interact

with one another in marketswith one another in markets..

• Quantity Supplied refers to

the amount (quantity) of a

good that sellers are willing

to make available for sale at

alternative prices for a

given period.

What is Supply?

• Quantity Demanded refers to

the amount (quantity) of a

good that buyers are willing

to purchase at alternative

prices for a given period.

What is Demand

What is MarketWhat is Market

•• A market is a group of buyers A market is a group of buyers

and sellers of a particular and sellers of a particular

good or service.good or service.

Mr. Margo Fruit Vendor

As BUYER As SELLER

For example when you buy fruits For example when you buy fruits from a fruit vendor from a fruit vendor

Buyer :You are Buyer :You are the buyer/ the buyer/ Mr.MargoMr.Margo

Seller Seller : The fruit vendor: The fruit vendor Market: Both form the Market: Both form the

MarketMarket

•• Buyers determine demand.. Buyers determine demand..

If there are more no of people If there are more no of people

wanting to buy a particular wanting to buy a particular

fruit then the fruit then the DeamandDeamand for for

that fruit is high that fruit is high

In contrast if less no of In contrast if less no of

people want to buy that fruit people want to buy that fruit

then the demand of that fruit then the demand of that fruit

fallsfalls

What is Buyer’s role?What is Buyer’s role? Mr. Margo As BUYER

Who are the SellersWho are the Sellers

•• Sellers are the Sellers are the

people who get the people who get the

supply delivered to supply delivered to

the buyers or the the buyers or the

consumersconsumers

Fruit Vendor As SELLER

What is the role of sellers?

•• Sellers determine supply…Sellers determine supply…

Depending upon the demand the Depending upon the demand the

sellers determine the supply if they sellers determine the supply if they

see that more no. of people are willing see that more no. of people are willing

to buy that fruit then they increase the to buy that fruit then they increase the

supplysupply

In contrast if there is less demand for In contrast if there is less demand for

that fruit then they cut down the that fruit then they cut down the

supplysupply

Supply may also vary due to seasonal Supply may also vary due to seasonal

availability of a particular availability of a particular fruit.fruit.

Above discussion

about

“Demand & Supply” was just in relation to the story

we had ,infact buyer-seller,

relationship exists everywhere.

“Supply and Demand cycle” is apart of each and every

market , industry & organisation

it woulb be clear with the

following examples!

Some examples for better understanding!!

Example ` 1 2 3

There can be many

more examples !

Buyer Student Housewife Engineer

Demand Notebooks Tomato, potato Resisters ,capacitors

Seller Stationary shopkeepers

Vegetable Vendor Electronic parts retailer

Supply Note Books etc

All Types of Vegetables

Resisters , capacitors, LEDs , batteries etc

I hope ,now you are clear with the idea of

“Supply & Demand”

All the best!!!!