Exploring Supply and Demand Concepts

Maya and Tomas run a lemonade stand, learning about supply and demand. They adjust prices based on demand, face competition, and add value by selling cookies. They achieve equilibrium by balancing supply and demand, understanding key business concepts like pricing, competition, and added value.

What was the initial cost per cup of lemonade?

• 10 cents

• 20 cents

• 25 cents

• 35 cents

Why did Maya and Tomas decide to increase the price to 25 cents?

• They wanted to buy a video game

• They were competing with another stand

• The demand was high

• They had too much lemonade

What happened when the price was increased to 35 cents?

• Sales increased

• Sales remained the same

• Sales decreased

• They ran out of lemonade

What did Jack suggest when he saw the price was too high?

• Have a sale

• Increase the price

• Sell more lemonade

• Close the stand

What new competition did Maya and Tomas face?

• A fruit juice stand

• A candy store

• A soda and hot dog concession stand

• Another lemonade stand

How did Maya and Tomas add value to their lemonade stand?

• Selling more lemonade

• Offering free samples

• Adding chocolate chip cookies

• Lowering the price

What did Mr. Smith mean by 'equilibrium'?

• There is no competition

• The demand is low

• The supply and demand are balanced

• The price is too high

What can affect the balance of supply and demand according to Mr. Smith?

• Weather conditions

• The color of the stand

• The type of cups used

• The location of the park

What did Maya and Tomas learn about pricing and demand?

• Prices should be adjusted based on demand

• Lower prices always lead to fewer sales

• Prices should never change

• Higher prices always lead to more sales

What is one of the key factors that can influence supply and demand?

• The size of the product

• The color of the product

• Advertising

• The type of product