Supply and Demand
This is the term for how much of a product is available for people to buy.
What is "supply"?
If two lemonade stands are selling drinks on the same street, they may lower prices to attract customers. What is this called?
What is "competition"?
What happens when a store has too many of a product that no one wants?
What is "a surplus"?
A store sells out of Halloween candy the day before Halloween. What economic principle is this an example of?
What is "high demand and low supply"?
When a store runs out of a toy right before Christmas, parents rush to buy it online at higher prices. What is this an example of?
What is "high demand and low supply making prices rise"?
This is the term for how much people want a product.
What is "demand"?
When demand for a product is low and supply is high, what happens to the price?
What is "the price goes down"?
If a farmer grows more corn than people buy, what happens to the price?
What is "the price goes down because supply is high"?
A clothing store has too many winter jackets left in April. What might they do to sell them?
What is "put them on sale/lower the price"?
What happens when a company makes a product that nobody wants to buy?
What is "a surplus, leading to lower prices"?
When a new toy becomes super popular and stores run out, what happens to its price?
What is "the price goes up because demand is high"?
A sneaker company sells a limited number of special-edition shoes. What happens to demand and price?
What is "demand goes up, and the price increases"?
If a new video game is super popular but stores run out, what is this called?
What is "a shortage"?
A lemonade stand sells drinks for $1, but then a heat wave makes more people want lemonade. What will likely happen to the price?
What is "the price will go up because demand increased"?
If a bakery raises the price of cookies but nobody buys them, what might they do?
What is "lower the price to increase demand"?
If a store has too many apples and they aren’t selling, what might they do to the price?
What is "lower the price to sell more"?
When gas prices go up because fewer barrels of oil are available, what economic principle is at work?
What is "low supply leads to higher prices"?
A bakery only makes 20 loaves of bread, but 50 people want to buy them. What will likely happen to the price?
What is "the price will go up because demand is greater than supply"?
A video game costs $60 in stores, but online sellers are charging $200 because it’s hard to find. Why?
What is "high demand and low supply"?
What would happen if a company made only 10 of the newest iPhones, but millions of people wanted them?
What is "the price would go up because of extreme demand of low supply"?
What do we call it when there is not enough of a product to meet demand?
What is "a shortage"?
A business makes just enough of a product to meet demand. This helps avoid which two problems?
What are "shortages and surpluses"?
If a company makes a product that nobody wants, what must they do to sell it?
What is "lower the price or improve the product"?
Why do gas stations in different parts of a city sometimes have different prices for gas?
What is "competition and supply in different locations"?
How does advertising affect demand?
What is "advertising can increase demand by making people want a product more"?