Exploring Supply and Demand Concepts

Why is Halloween candy often on sale the week after Halloween?

• Because the supply of candy increases.

• Because the demand for candy increases.

• Because the supply of candy decreases.

• Because the demand for candy decreases.

What is the term used to describe items like video games and ice cream?

• Commodities

• Products

• Goods

• Services

What is a service?

• A physical item you can buy.

• A type of good.

• Work done for others, like by a doctor or bus driver.

• A product that is sold in stores.

What happens to the price of candy when the supply is low and the demand is high?

• The price fluctuates randomly.

• The price goes up.

• The price stays the same.

• The price goes down.

What is the relationship between supply and demand?

• When supply is low and demand is low, prices go up.

• When supply is high and demand is low, prices go down.

• When supply is low and demand is high, prices go down.

• When supply is high and demand is low, prices go up.

What happens to the price of candy after Halloween when the demand is low?

• The price goes down.

• The price fluctuates randomly.

• The price stays the same.

• The price goes up.

Why do stores lower the price of candy after Halloween?

• To increase the demand.

• To decrease the demand.

• To increase the supply.

• To decrease the supply.

What is the effect on prices when both supply and demand are high?

• Prices go up.

• Prices fluctuate randomly.

• Prices go down.

• Prices stay the same.

What is the effect on prices when both supply and demand are low?

• Prices go down.

• Prices go up.

• Prices stay the same.

• Prices fluctuate randomly.

What principle explains why prices change based on supply and demand?

• Law of Gravity

• Law of Pricing

• Law of Supply and Demand

• Law of Economics