Law of Demand and Supply

Your class is raising funds for Mano Amiga. 

Each day, you have to sell donuts for 20 pesos each.

• Proceed

• Proceed

1. On Monday, your class sold all 50 donuts in less than 10 minutes during recess time. What was higher, the supply or the demand?

• supply

• demand

2. On Tuesday, your class added 20 more donuts to sell. 

Did you increase the supply or the demand?

• supply

• demand

3. You were able to sell all 70 donuts, but there were 30 more students who wanted to, but did not get to buy since you ran out of donuts.

This is an example of ______.

• surplus

• shortage

4. On Wednesday, the 5th graders gave away free muffins.

Do you think this would cause the demand for donuts to go up or go down?

• demand goes up

• demand goes down

5. Since only a few students wanted to buy donuts, should you make the price for the donuts higher or lower?

• higher

• lower

6. On Thursday, your class added a new and improved version of your donuts with cookie crumb topping. 

Do you think this would cause the demand for donuts to go up or go down?

• demand goes up

• demand goes down

7. As a member of the class that sells donuts, do you want a higher demand or a higher supply of donuts? Or neither? Or both? Why?

8. If the demand is high but you are allowed to sell only 25 pieces of donuts a day, what would you do with its price?