Scarcity, Trade-Offs & Laws of Supply & Demand

Having a short supply or not enough of something is:

• supply

• demand

• scarcity

• trade-off

When water is scarce, it must be saved for most important things like growing crops. This is an example of:

• A decision that a community might have made when there was water scarcity.

• A trade-off that one person could have made to save water.

• An opportunity cost.

Which are examples of trade-offs? Mark all that apply.

• Saving your allowance instead of spending it on the ice cream man.

• Not watering the lawn in order to take longer showers.

• Going to sleep early because you are tired.

• Studying during lunch instead of talking to your friends.

What you give up in a trade-off is called ______________ .

• an opportunity cost

• a trade-off

• scarcity

• supply

• demand

The law of DEMAND says that ________

• The lower the price, the greater the demand.

• The higher the price, the lower the demand.

• The higher the price, the higher the demand.

• The lower the price, the lower the demand.

What happens when DEMAND INCREASES (people want more), but SUPPLY DECREASES (the maker puts out less of the product)?

• Prices go up.

• Prices go down.

• Prices stay the same.