- Supply decreases, demand increases → There will be a shortage of the product. Price will increase.
- Supply increases, demand decreases → There will be a surplus of the product. Price will decrease.
- The Cardinals win the World Series and everyone wants their shirts. → There will be a shortage of the product. Price will increase.
- Supply increases, demand stays the same → The market moves towards equilibrium.
- Supply decreases, demand stays the same → There will be a shortage of the product. Price will increase.
- Demand increases, supply stays the same → There will be a shortage of the product. Price will increase.
- Demand decreases, supply stays the same → There will be a surplus of the product. Price will decrease.
- Supply and demand both increase → The market moves towards equilibrium.
Parent Tip: Review the logic above to help your child master the concept of demand worksheet.
