r\c about Supply and
by Nancy Loewen
illustrated by Brian tenser.
Focus Questions
What are the rewards o! running your own
business? What are the risks? How does
supply and demand affect what you buy?
,:s will read the story twice over a four-day period.
SILENT READ Have students read the first half of the selection.
Lemons and Lemonade
Vocabulary
Warm-Up
Read the article to
find the meanings of
these words, which are
also in "Lemons and
Lemonade":
+ stack
+ competition
4- expenses
* demand
* profit
* supply
+ product
4- balance
Vocabulary
Strategy
Apposition is when
a word or group
of words define
another word in the
same sentence. Use
apposition to find the
meaning of expenses.
Suki gently reiuoverl one brkjhl-red
apple from (he top of the stack. Max
always had the produce displayed .so
neatly. He ran a fruit stand near the
public pool.
"Just one apple today?" Max asked.
"You're nol (jiving your business to
the competition are you?"
Suki smiled and shook her head.
"No, Max. You know I'm a loyal
customer. I'm jusl trying to reduce my
expenses, or the money I spend to run
my business. There hasn't been much
demand for baby-sitters this month.
My income is down."
"I guess it's tough for baby-sitters
to make any profit with families away
on summer vacation," Max replied. ?le
lifted a large box to [he table and cut il open. A fresh
supply of grapes hud jusl come in.
Max Ihouyhl a minute. "How would you like
to help me out here?" he asked. "I was thinking
it's lime I expand my staff."
"Do you really mean il?" Suki asked. "I've never
had a job like this."
"Well, you're one of my best customers—you sure
know the product! You'll be a big help lo shoppers.
It's peak fruit season too. I could use an extra sel of
hands to help wash and set out the fruit."
"Thanks for (he offer, Max. What if I yet called to
baby-sit? 1 don't want to lose that business," said Suki.
"Don't worry." Max assured her. "It'll be easy
to balance your work schedules."
"Great!" exclaimed Suki. "Now, where are we going
to put these grapes?"
Concept
Vocabulary
Synonyms
List the vocabulary words
on a sheet of paper. Beside
each word, write a synonym
for that word. When you
and a classmate are both
finished, compare the
synonyms you listed for
each vocabulary word.
Discuss the concept vocabulary word benefit with students. Ask students how
they think the word benefit relates to the theme Money. As students read the
selections in this unit, encourage them to think about other words that relate to
The concept word for this
lesson is benefit. A benefit
is something that is helpful
or that is good for a person.
What are some possible
benefits of having your own
business? What are some
possible benefits of working
for someone else?
Lemons and Lemonad
Karly's first customer was
Mrs. Crane from next door.
"Mrnmmm, delicious, dear,"
she said.
Next came the boy who
mowed Mr. Smith's lawn. He
was so thirsty he bought two
lemonades.
Josh and Shaun, brothers
from across the street, sat with
Karly for a while. Together they
sold lemonade to a woman out
for a jog, a couple of kids on
bikes, and a babysitter pulling a
toddler in a wagon.
At suppertime, Karly ran
into the house. "Look at all this
money!" she said.
Mom smiled. "You did great.
That money is called your
gross profit."
,0
"Gross?" said Karly. "I don't
think so!"
"Gross just means total," Mom
explained. "But remember,
out of that money you still
need to pay for the cost of the
lemonade, cups, and ice. Those
are your expenses."
"Well, I'll bet there will be
some money left," Karly said.
"The money you have left
is called your net profit,"
Mom said.
Some businesses sell
goods, such as food,
tires, or clothing.
Others sell services,
such as cutting hair
or fixing cars.
Gross and net are important
business terms. Gross profit,
minus expenses, equals net profit.
302
303
I ' I 1,1 | I Tf.
t m. f | I , I t
| I' i II
: I I}- !:
U U ii ii U U U u U
•'.IkH'ni;- Teacher Prompt: Can anyone confirm any predictions
That night, Karly made a
new sign.
The word market" can
mean different things.
It can be a place where
goods are bought and
sold. But it can also refer
to the people who make
spending decisions.
"I see you've raised your price,"
Mom noted. "You're testing the
market—seeing how much people-1
are willing to pay."
"Exactly," said Karly. "I can't wait
for tomorrow!"
Karly set up her lemonade stand
early the next day. A garage sale
was going on down the street, and
people were everywhere. Business
was fantastic! Karly was completely
sold out by early afternoon.
"When people want what you're
selling, that's called demand,"
Mom explained.
"Can we go to the store and
buy lots more lemonade?" Karly
begged. "I don't want to run out
again tomorrow."
If demand for a product is high, and
not enough of that product can be
made, the result is scarcity. The
product is hard to find and often
expensive.
305
Students will
*" use comprehension strategies Predicting, and
Comprehension Strategies
Lemons and Lemonade
t
The next morning was cool
and windy. The garage s*ale was
over. Hardly anyone was around,
and those who were didn't want
cold lemonade.
In business, supply and
demand are the two key
factors in determining price.
"There's no demand today,"
Karly complained to Mom.
"Nope," Mom said. "It's tough
to balance the supply of a
product with the demand for it."
Karly nodded. She decided
to close up shop. She wanted
a break from the lemonade
business.
On the next hot day, Karly set
up her lemonade stand again.
No sooner had she put out her
sign when she saw Josh and
Shaun across the street. They
had set up their own stand! All
of Karly's regular customers
were there.
Mom brought Karly a fruit
snack. "I guess you don't have a
monopoly anymore," she said.
"This isn't a game, Mom."
'c
o
"1 mean, your business isn't
the only one anymore," Mom
said. "You have competition.
People have more choices."
Karly opened her fruit
snack—and had a great idea.
J?
"Be right back!" she said, as
she ran into the house.
V
Because a monopoly has no
competition, it can set prices
high. But if there's competition,
prices will usually be lower.
306
Teacher Prompt: Can anyone share any connections
they are making to the story? Possible Student Response / know how Karly feels
when she sees that her friends have set up their own lemonade stand. Once / helped
Differentiating
instruction
English Learner
IF ... students would benefit from extra help
Day 2
—^"^^^^™—'
^-
—-*^^^B^^^^—
Reading and Responding
Karly returned with a bowl of fruit
snacks and a new sign.
"You've cut your lemonade price
to be more competitive. And by
offering a new product, you've
expanded your business. Nice
going!" Mom said.
Business started picking up.
Karly felt proud when she looked
at the coins in her basket.
When businesses discount
their products, they make
less profit per item. But
they hope to sell more of
the product and make more
money overall.
ic
.*" \ k-J
surprised to see Josh and Shaun
walking toward her.
"We were wondering if you'd like
to be business partners," Josh said.
"We have this friend who lives
across the street from the park,"
Shaun added. "There's a softball
game going on today. Maybe we
could go there together."
Karly thought about all the thirsty,
hungry people at the park. It would
be fun to work with her friends, too.
\r that afternoon, Karly was
"Great idea!" she exclaimed.
"Let's do it. We'll be rich!"
309
308
Comprehension Strategies
UNIT
Lesson 3
Name
Date
Selection Vocabulary
stack (stak) n. a pile
(page 301)
balance (bar • 3ns) n.
to make equal in weight,
profit (prof • it) n. the amount amount, or force (page 306)
of money left after all the
supply (sap • pli') n. a
costs of running a business
quantity of something ready
to be used (page 306)
have been paid (page 303)
Focus
expenses (eks • pens' • az)
n. plural form of expense:
money spent to buy or do
something; cost (page 303)
demand (da • mand1) n. the
desire for a product or service
(page 305)
^ractice
product (prod1 • uct) n.
anything that is made or
created (page 306)
competition (kom1 • pat • ish'
• an) n. the act of trying to
win or gain something from
another or others (page 307)
Circle the correct vocabulary word
that completes each sentence.
Eduardo and Maria had a big (stack/demand) of
things to get rid of.
They decided to have a garage sale and try to
make a (expenses/profit).
Their only (expenses/product) were the costs of
making signs and flyers.
Maria said, "Let's have a (competition/product) to
.see who can sell the most stuff."
tricky to (profit/balance) selling items and
giving people change.
te Practice 1 • Vocabulary
UNIT 3 - Lesson 3
Lesson 3
Read each pair of sentences. Write the vocabulary
word that completes the second sentence.
6. The potter made a cup to sell. The potter made
7. Soccer teams from around the world tried to win the
World Cup. They had a
.
._
_..
._.
8. After the store owner paid her bills, she had_$10_00
left over. The store owner had made a
_____ _. _
H. Yuri tried to organize his pile of papers. He had a big
.„
of papers.
10. Neela worked to make each pile of tomatoes the
same weight. She wanted to
____.„
.
them.
11. The theater had to spend money fixing broken seats.
The theater had _
_..
12. On the first day of school, Harold had ia big_box^f pencils.
Harold had a
___.,
of pencils.
13. Because of the hot day, beachgoers bought a lot of
ice water. There was a
200
UNIT 3 • Lesson 3
for ice water.
Vocabulary • Skills Practice 1