Economics Supply and Demand

If a new video game is very popular and hard to find in stores, what is likely true about its supply and demand?

• Supply is high, and demand is low.

• Supply is low, and demand is high.

• Both supply and demand are high.

• Both supply and demand are low.

When a store has a sale, what happens to the demand for the items on sale, assuming the quality of the items does not change?

• Demand decreases.

• Demand increases.

• Demand stays the same.

• Demand disappears.

Why might a company decide to increase the supply of their product?

• To decrease demand.

• To increase demand.

• To meet an increase in demand.

• To make the product more expensive.

Demand is ___________________.

• how much of a service or product you have.

• how much someone wants your product or service.

• the nickname for the coolest guy in school because he is "da man"

• how much money your business makes before taxes.

Supply is _______________.

• How much oxygen is left in the atmosphere.

• how much someone wants your product.

• how much of a product or service you have.

• the name of the hit song from the band Eco and the Nomics.

In economics, a producer is _________________.

• one that has a great love for all produce (apples, oranges, bananas, etc).

• someone that produces plays, television shows, or movies.

• someone that sells a product or service.

• someone that buys products or services.

Elise has started her own Christmas tree ornament business. In April, she is struggle to sell many ornaments and the demand is low. What will likely happen to Elise's product in November and December?

• they will be crammed into a warehouse because she cannot sell them.

• the demand will continue to decrease because no one likes her product.

• the supply will become more limited because people will buy more of them.

• the demand will increase and she will be able to raise her prices because people want ornaments for Christmas.

How are fair prices set using SUPPLY AND DEMAND?

• data tracks where SUPPLY and DEMAND meet (called Equilibrium Point) and that advises the best price points for consumers and producers.

• the government tells businesses what they must charge for goods and services.

• producers throw darts at a dart board and pick whatever it lands on.

• using the Wheel of Names.

Aquila has opened his own donut shop (Aquila's Delicious Donuts) and was making a lot of money selling his product. Lynnix decided to open her own bakery (Lynnix's Likeable Treats), and suddenly Aquila is seeing less demand for his donuts. Why is this?

• Lynnix is mean and people are scared not to buy treats from her.

• Aquila's donuts aren't coming up with many new flavors.

• There is now COMPETITION in the market and consumers have a different option when purchasing baked goods (making the demand lower)

• Lynnix is offering specials deals if you buy baked goods from her store.

Judah has gotten into the business of selling custom shoes. However, Caleb now owns a shoe store and is selling custom shoes for a slightly lesser price. This is lowering the demand for Judah's product. What can Judah do to increase buisness?

• Quit. He doesn't stand a chance against Caleb.

• Lower his prices a little to draw more demand from consumers.

• Give his remaining shoes to charity.

• Hire Hector Zeroni to become his new marketing agent and advertise his shoes at a higher price.