Demand and Supply Quiz

What happened when the price of the bubble tea increased to AED 14?

• Demand increased

• Demand decreased

• Supply decreased

• Customers bought more

Which of the following best shows the relationship between demand and supply?

• Higher supply always leads to higher prices

• Lower demand usually causes prices to fall

• Demand and supply never affect price

• Prices stay the same no matter the demand

State whether the following statements are true or false. Correct only the false statements. When prices are lowered and promotion is added, demand usually drops.

Demand has no effect on how much product the seller supplies.

Why do businesses like BubbleBliss change their prices depending on demand?

Do you think lowering the price was the best decision for BubbleBliss? Justify your answer with two reasons.

Write the meanings of the following with examples

A. Demand

B. Supply

C. Budgeting

D. Saving