Understanding Demand and Supply

What is demand?

• Demand is the total amount of money a consumer has.

• Demand refers to the supply of goods in a market.

• Demand is the price at which a product is sold.

• Demand is the quantity of a product or service that consumers are willing and able to purchase at a given price.

What is supply?

• The total amount of a product or service available for purchase.

• The demand for a product or service.

• The price of a product or service.

• The quality of a product or service.

What happens when demand is high?

• Demand remains unchanged regardless of price.

• Prices decrease and lead to surpluses.

• Prices increase and may lead to shortages.

• Prices stabilize and do not fluctuate.

What happens when supply is low?

• Supply becomes more abundant immediately.

• Prices decrease due to lower demand.

• Demand remains unchanged regardless of supply.

• Prices increase due to higher demand relative to low supply.

Can you name something people want?

• Happiness

• Wealth

• Fame

• Power

Can you name something people sell?

• vehicles

• clothing

• furniture

• electronics

What do we call the price of a toy?

• cost

• retail price

• price tag

• value

What happens to prices when more people want something?

• Prices decrease when more people want something.

• Prices fluctuate randomly without relation to demand.

• Prices remain the same regardless of demand.

• Prices increase when more people want something.

What happens to prices when there are many toys available?

• Prices decrease.

• Prices fluctuate unpredictably.

• Prices increase.

• Prices remain the same.

What is a store's supply of candy?

• Candy selection

• Inventory of candy

• Candy display

• Candy sales