Law of Supply
What is supply?
Supply is the number of good/service producers are willing to produce respective to price
What is demand?
Demand is how willing consumers want to buy a good/service respective to price
Labubus suddenly became popular! What happens to the demand of the good?
Demand increases
The price of bread is really high right now. Will suppliers produce more or less?
More
When the price of a good/service goes up, what happens to the demand and what happens to the supply.
Demand down; supply up
When price goes down, what happens to supply
supply goes down
When price goes down, what happens to demand
Demand goes up
Demand increases; Price increases
The price of chickens decreased because everyone's turning vegan. Will suppliers supply more or less now.
Less
Concert ticket prices for a famous artist increase from $60 to $150. Assuming all else stays the same, what will happen to the number of purchases made?
They'll decrease
What is the Law of Supply
When the price of a good/service goes up, producers are willing to produce more and vice versa.
What is the Law of Demand
When the price of a good/service goes up, demand of consumers goes down and vice versa.
John's car repair shop got greedy and decided to charge more for service. What is likely to happen to the demand Joe's car repair shop's services that is located right across the street?
Demand increases because Joe's car repair shop is a substitute service.
The price of eggs is at $3. Later, it rises to $4. Are suppliers willing to produce more or less eggs now.
More eggs
A popular sneaker brand lowers the price of its shoes from $140 to $95 during a weekend sale. What is likely to happen to the quantity demanded, and why?
When price goes up, what happens to supply?
Supply goes up
When the price goes up, what happens to demand?
Demand goes down
The minimum wage in the U.S has significantly increased since the early 2000s. What would happen to employer's demand?
Demand would decrease
Gas prices are more than $4 a gallon now! What does this indicate about the current situation with the oil supply?
The supply of oil is low
Due to a drought, orange farmers can only grow half as many oranges as usual. If orange prices rise significantly, what will producers try to do?
Produce more oranges
What is the difference between quantity supplied and supply.
Quantity supplied is the supply at an exact point on the graph while supply itself is the holistic measure of supply on the graph.
What is the difference between quantity demanded iand demand.
Quantity demanded is the demand at an exact point on the graph while demand itself is the holistic measure of demand on the graph.
Donald Trump won the 2024 presidential election! Consequently, what happened to the demand of Tesla stocks and how did it impact the price?
Demand increased; Price increased; Change in consumer outlook
Labubus were a massive hit, and their price skyrocketed! What happens to the quantity of labubus at which suppliers produce.
They produce more
The government offers subsidies to solar panel manufacturers, making production cheaper. If companies can now earn more profit per panel sold, what will producers do?
Make more panels