Microsociety week 6+7

Profit and loss, Supply and

demand.

In week 6 we learnt about profit and loss. Profit (if you have any)is the money you receive after you have paid all your bills and taxes. Income is the money you get before all your taxes and bills have been paid. Finally loss, it is when you or your buisness spends more then you earn. Therefore you have made a loss.

We watched a video explaining the above.

We also tried to work out if a company had made profit or loss

We tried to keep our ledger ( a piece of paper or something recorded on a computer that tells your expenditure and your income) up to date. Our company had nothing to sell at that time so we had made a definite loss because our starting cost was 86 peake zo's!

We looked at the idea of supply and demand and discussed what it meant and what to do if the supply was lower or higher then the demands. For example if the demand was lower than the supply then you might lower your price. However if the demands were higher then the supply then you might raise the price to profit from greater demand.

We traded and tried to work out if we made a profit or a loss and this time we did make a profit. I think some of us forgot what to do if the the demand was lower then the the supply though. This trading session was a success though, we sold 6 of our items ! and that got us 95 more peake zo's.