G4/5 explaining markets

In this unit, we've been learning about markets. After doing a lot of word work relating to the unit, we worked together to try to explain what we know so far:

How markets work

An explanation text by: Nayan, Rathnysa and Ty Muy (Grade 4)

If you’d like to know what a market is and how it works, then you’re in the right place. A market is when people around the world manufacture products (or offer services) and then sell them to other people. The people who make things are called the suppliers and the people who buy things are called the buyers.

Demand is when people want or need to buy products. When demand is high, people want or need a lot of the item, so suppliers will increase the quantity of goods supplied.

Supply is when people make things and then sell them. When supply is limited, the prices go up because people really want the things and will pay more to get them before they run out. If suppliers manufacture too many products then they have to make the prices lower so that more people will buy them.

Equilibrium is when demand and supply are equal. This means that there are not too many products being made and everyone who wants to buy it gets what they want. The price is fair for people and suppliers, therefore it is called a fair price.

Markets change all of the time. They depend on supply and demand.

Glossary:

Manufacture = make

Products = things that you buy

Quantity = amount / number

Limited = small / not many

How markets work

By: Hyewon and Jaehoon (Grade 5)

Do you know what markets are? Markets are when people make things and then sell them.

Suppliers manufacture products to sell around the world. This is called supply. If supply goes down, then the prices go up, because there are not many products, so the people who offer the highest prices get the goods.

Demand is people’s wants and needs. If demand is high, then the price is also high, because people really want the product and will pay more money for it. If demand is low, then the price is also low, because suppliers need to sell all the products they made. If people don’t want the product, they have to make the price lower so people want to buy it.

Equilibrium is where supply and demand meet, which means it’s good for sellers and it’s good for buyers. Sellers can sell all their products and buyers can all buy what they need or want. The price is not too expensive and not too cheap, it is fair for everyone.

So, whenever you buy something, you are part of the market, because you help the sellers by creating a demand.