Supply
Workers in a furniture factory have gone on strike and are no longer working to make new furniture.What happens to supply of furniture?
Supply goes down.
It's fall in New York. What is one item that is about to have an increase in demand?
Coats, Boots, gloves, scarves..etc.
What is a shortage?
When supply is less than demand.
Johnny Rocket wrote a book about his life. It sold for $10 at most book stores. Then, Johnny died and everyone wants his book now. Does the price go up or down? Why?
The price goes up because demand for the book went up.
allocating something scarce among people who want more than is available
Leather becomes more expensive. What happens to the supply of leather shoes?
Supply goes down.
What is the law of demand?
Buyers purchase more at lower prices than at higher prices
What is a surplus?
When supply is more than demand.
The zombie apocalypse has come and factories have stopped making toilet paper. Does the price of TP go up or down? Why?
Goes up because there is less supply.
When there is too much of something in the market, who has the power?
Buyers.
Halloween is approaching. What happens to the supply of costumes?
It goes up.
According to the law of demand, what would you do in this situation: you are in the cereal aisle and are trying to choose between two options of very similar cereals.
You pick the cheaper one.
A local grocery store orders 200 cases of Pepsi each week and sells them at a price of $6.00 per case. At the end of the first week, they have only sold 160 cases. What economic situation is the grocery store facing and what will have to happen to price in order for equilibrium to be attained?
Surplus, Price will need to be lowered
If the supply increases and the demand increases at the same rate, what happens to the MCP?
It stays the same
What happens to the Market Supply for tissue boxes in the spring, when people have more allergies? Does the line slide right or left?
Right
Production at a burger chain had been slow, but the owners invested in a new, fast cooking grill and fryer. The supply goes up. What is the determinant?
Change in technology.
How does the law of demand keep sellers from selling things at too high a price?
If they price things too high, no one will buy them!
How do buyers and sellers decide what price they agree upon? Describe the process.
Answers vary.
Mystic is selling bracelets. Suddenly, Ariana Grande is seen wearing one of those bracelets. Does the price go up or down? Why?
Price goes up because there is now more demand for the item.
What provides an incentive for sellers to produce certain items?
If they can sell it for more, if what they used to be selling has gone out of style, etc.
There are four car dealerships in a town. One of them closes. Supply of cars goes down. What is the determinant?
Change in the number of suppliers.
If Rachel raised the price she charges in her house-cleaning service and her total revenue goes up, does it mean that demand for house cleaning is elastic or inelastic?
inelastic
What might make the MCP for canned beans go down?
Answers vary.
There are only 4 bags of hot chips left in the student store. Elena decides to sell them to students. Do you think she should sell them for a higher price or a lower price than what they were sold at in the student store? Why?
Supply has gone down, so she has the ability to up her price and sell to the highest bidder.
What is one reason that someone might buy something even though it is super expensive?
Status, brand loyalty, unwillingness to research, there are no other options