Surplus
The opposite of surplus
Shortage
The opposite of shortage
surplus
What is Supply and Demand
A term to explain how much something is wanted and how much of the same thing is being sold.
Are prices affected by trends?
Yes, they can rise or fall depending on trends.
What is surplus
When there is more supplies and resources than there is demand.
What is a shortage?
When there are not enough supplies and resources to satisfy the demand.
How can demand change supply
If too many people want to buy something, then there will be more supplied to the consumer unless all stock is bought out
If demand is high, what could happen to the price of something?
The price can rise.
What can stores do about their products if there is a surplus and they want to get rid of them?
Stores can lower the prices to make it easier for customers to purchase.
What can stores do to their products in a shortage when supply is low.
Stores can increase the price of the product so they can make more money on the little supplies they have left.
how can supply change demand
If there is a lot supply then price will go down and more people will be willing to buy
If demand is low, what could happen to the price of something?
The price could lower.
Is a surplus good for a company?
A surplus is not great for a company because the company usually deals with it by lowering prices.
Is a shortage good for a company?
A shortage could be bad or good. The price rises which could make more money only if people still want to buy the higher price. Also, they don't have a lot of resources to make products.
why did toilet paper have low supply during covid? what happened to the demand?
because a lot of people were buying it. the demand went up because of the situation and people were stocking up and buying in bulk
Name a product that is currently trending and is hard to find due to the high demand.
When could a surplus happen?
A surplus can happen when a company thinks a product will do very good and buy a bunch of supplies for that product. If the product does not sell how they expected, they have a bunch of supplies left over and that is a surplus.
When could a shortage happen?
A shortage could happen when a product randomly blows up in demand and a company does not have the supplies to satisfy that extreme demand. The company is then left with little resources for that product.
Give the definition of supply and demand. Also, give an example.
Answers vary.
How can company owners use the current trends in demand to scale their prices?
Depending on what is trending, stores can raise prices because they know the demand is high and a lot of people want to buy the product.