Shortage and Surplus

A designer raises the price of jeans by 50%. This will likely lead to a:

• Shortage

• Surplus

A limited quantity of popular dolls are released right before Christmas. This will likely lead to a:

• Shortage

• Surplus

A clothing store creates a limited line of t-shirts featuring a popular singer. This will likely lead to a:

• Shortage

• Surplus

A company raises the price of their new computer by $100 at the same time their competitor releases a new, cheaper model. This will likely lead to a:

• Shortage

• Surplus

Define Supply

• a consumer's willingness to pay a set price for a specific good or service

• the amount of product that a producer is willing and able to sell in the marketplace

• more items available for sale than people want to purchase

• more people want an item than is available for purchase

Define Demand

• a consumer's willingness to pay a set price for a specific good or service

• the amount of product that a producer is willing and able to sell in the marketplace

• more items available for sale than people want to purchase

• more people want an item than is available for purchase

Define Surplus

• a consumer's willingness to pay a set price for a specific good or service

• the amount of product that a producer is willing and able to sell in the marketplace

• more items available for sale than people want to purchase

• more people want an item than is available for purchase

Define Shortage

• a consumer's willingness to pay a set price for a specific good or service

• the amount of product that a producer is willing and able to sell in the marketplace

• more items available for sale than people want to purchase

• more people want an item than is available for purchase