COMPETENCIES TO MASTER
Why do things cost what they do, and why do prices change? How should we make decisions about where to spend money? In this Project, you’ll use fundamental economic and financial principles to analyze the changes in the price of Furbies over time and analyze choices about buying and selling Furbies.
Remember “Furby,” that strange furry toy from 1998? According to Wikipedia, Furbies originally sold for $35 each. However, they were so in-demand during the 1998 holiday season that they often resold for over $300. Today, you can buy a 1998 Furby for less than $15! Why? Complete the Supply and Demand Worksheet to find out!
Before you start the Supply and Demand Worksheet, make sure you are familiar with the following terms and concepts:
- Supply and demand graphs
- Surplus and shortage
- Equilibrium point
- Shifts vs. movements
- The present value of money
- Stocks vs. bonds
- Completed Supply and Demand Worksheet
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