Exploring Supply and Demand Concepts

Davis Tolliver introduces supply and demand concepts for kids, explaining how supply is the quantity of a product available and demand is the desire for it. He uses examples like chocolate bars and dog walking services to illustrate how supply and demand affect pricing. The video highlights the importance of these concepts in determining costs and provides real-life examples, such as clearance racks, to show how businesses adjust prices based on supply and demand. The video concludes by emphasizing the significance of understanding these economic principles.

What does supply refer to in economics?

• The desire to purchase goods

• The amount of a product available

• The price of goods

• The manufacturing process of goods

What determines the demand for a product?

• The cost to manufacture the product

• How much people want the product

• The number of products produced

• The advertising budget for the product

If you have one chocolate bar and many friends want it, what can you do with the price?

• Keep it the same

• Give it away for free

• Decrease it

• Increase it

Why might a store raise the price of a popular item?

• To maximize profits

• To increase supply

• To decrease demand

• To clear out inventory

What happens to the price when supply is low but demand is high?

• It remains constant

• It decreases

• It is unpredictable

• It increases

What is a direct result of high demand and limited supply?

• Lower quality of goods

• Increased competition among buyers

• Decreased interest in the product

• More products being produced

What did Sarah do when her dog walking service became highly demanded?

• She lowered her prices

• She raised her prices

• She hired more staff

• She stopped accepting new clients

Why are clearance racks used in stores?

• To decorate the store

• To clear out items that are not selling well

• To sell items quickly due to high demand

• To display new arrivals

How can supply and demand affect a service industry, like lawn mowing?

• By decreasing the number of potential clients

• By increasing the time needed to complete a job

• By reducing the quality of service

• By raising the price due to high demand

What strategy do stores use to increase demand for overstocked items?

• Offering buy-one-get-one deals

• Limiting the number of items a customer can buy

• Lowering prices

• Raising prices