Understanding Supply and Demand

Why are laptops generally more expensive than desktop computers?

• Laptops are more popular than desktops.

• Laptops use more expensive resources to build.

• Desktops are outdated technology.

• Laptops are produced in larger quantities.

What happens to the price of a product when its supply is lower than the demand?

• The product is discontinued.

• The price increases.

• The price remains the same.

• The price decreases.

What is the primary reason a company might raise the price of its products during a supply shortage?

• To reduce competition.

• To discourage customers from buying.

• To maintain profitability.

• To cover increased production costs.

Why might vegan or gluten-free snacks be more expensive than regular snacks?

• They are produced by more companies.

• They are made with scarce resources.

• They are more popular.

• They have a longer shelf life.

Which of the following factors can lead to a decrease in product costs?

• Low demand for the product.

• Abundant supply of the product.

• Scarcity of resources.

• High cost of resources.