Explain Supply and Demand Using Real-World Examples

Apply core economic principles to relatable, everyday market situations.

Teaching Context:
Great for Year 9 to Year 11 Economics when introducing supply, demand, and market equilibrium.

Basic AI Prompt:
Explain supply and demand using the example of petrol prices.

Enhanced AI Prompt:
You are learning about how markets work. Ask AI to explain supply and demand using three real-world examples (e.g. petrol prices, PlayStation consoles, fresh strawberries). For each, ask AI to describe what happens when supply increases, demand falls, or prices rise unexpectedly. Then, ask AI to explain how shortages and surpluses affect consumers and producers. Finish by asking AI to predict what would happen if your school canteen tripled the price of snacks.

Spice it Up (Optional Extension):
Ask AI to write a breaking news story about a sudden shortage of a popular product.

Lesson Implementation:
Begin with a real-world example like fuel shortages or concert tickets selling out. Students use AI to create a table comparing supply/demand changes in three scenarios.

Groups role-play as consumers, suppliers, and government regulators reacting to a market shock. Wrap up with a market simulation game where students adjust supply and demand in real-time. This builds financial literacy and economic thinking.

Got ideas on different ways to use this prompt? Share them with the class in the comments below!

Also, if you liked this, you'll love the thousands of subject-specific AI prompts in our books section!