1. Supply is how much of a good or service is available. Supply and price move in opposite directions. If supply rises, the price usually falls.
2. Demand is how much of a good or service people are willing to buy. Demand and price move in the same direction. If demand rises, the price usually rises too.
3. If a new ice cream shop opens, the supply of ice cream will rise. Now multiple ice cream shops are competing to sell all of their ice cream. Prices will fall.
4. If ice cream becomes more popular, demand will rise. More people will want to buy ice cream. Prices will rise.
5. If supply falls, the price usually rises.
6. When demand falls, the price usually falls too.
7. If many ice cream shops close, the supply of ice cream will fall. There will be fewer ice cream shops to compete to get a share of what's left. A store can charge higher prices for its ice cream. Prices will rise.
8. If ice cream becomes less popular, demand will fall. Fewer people will want to buy ice cream. A store will have to lower prices to sell all of its ice cream. Prices will fall.
Parent Tip: Review the logic above to help your child master the concept of demand worksheet answers.
