Real-World Examples of Supply and Demand for Children

📚 Quick Study Guide

• 🍎 Demand: Desire of buyers for a product or service. When something is popular, demand goes up!
• 🏭 Supply: How much of something is available. If there are lots of toys, supply is high.
• ⚖️ Equilibrium Price: The price where supply and demand meet. This is the 'just right' price.
• 📈 Increased Demand: More people want something, so the price usually goes up.
• 📉 Increased Supply: More of something is available, so the price usually goes down.
• ✨ Scarcity: When there's not enough of something. This makes prices go up!

Practice Quiz

1. What happens to the price of a popular toy if everyone wants it for Christmas, but there are not many available?
   1. It goes down.
   2. It stays the same.
   3. It goes up.
   4. It disappears from stores.
2. If a new factory starts making lots of a certain type of doll, what will likely happen to the price of those dolls?
   1. The price will go up.
   2. The price will go down.
   3. The price will stay the same.
   4. People will stop buying them.
3. Imagine there's a shortage of chocolate. What is most likely to happen to the price of chocolate bars?
   1. The price will decrease.
   2. The price will stay the same.
   3. The price will increase.
   4. Chocolate bars will become free.
4. If a store has too many video games and they are not selling, what might the store do to get people to buy them?
   1. Increase the price.
   2. Keep the price the same.
   3. Decrease the price.
   4. Hide the video games.
5. What does 'demand' mean in the context of supply and demand?
   1. How much of something is available.
   2. The desire of buyers for a product.
   3. The cost of making something.
   4. The number of stores selling something.
6. What does 'supply' mean in the context of economics?
   1. How much money people have to spend.
   2. How much of something is available.
   3. How much people want something.
   4. The price of a product.
7. What happens to the equilibrium price if the demand for ice cream increases during the summer?
   1. It decreases because more people are buying it.
   2. It stays the same because the supply doesn't change.
   3. It increases because more people want it, and the supply might not be enough.
   4. It disappears because ice cream melts too fast.