Why are companies not able to sell items, such as MP3 players, for extremely low prices?

It costs companies money to deliver products to stores.

An opportunity cost means a consumer has made what kind of decision?

buy one item instead of another

How are supply and demand related?

The demand for a product determines if the supply is sufficent.

extra money left over after a company gets a product to consumers.

How might Johannes Gutenberg’s printing press, which increased the supply of books, impact the price of this product?

Books probably cost less because there was a larger supply available

What does the information on the graph below tell you?

The demand for the item must be high.

Why do prices get higher?

Items are in high demand and low supply.

If an advertisement says a limited number of an item is produced, the advertisement wants sell based on what idea?

use the idea of scarcity to make consumers buy it.

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Answers

1
Why are companies not able to sell items, such as MP3 players, for extremely low prices?
People think they are too cheap
Higher prices for items help stores sell products
It costs companies money to deliver products to stores.
Expensive items help attract customers to stores.
2
An opportunity cost means a consumer has made what kind of decision?
consumer will pay a higher price
go to a different store
buy one item instead of another
not to buy anything
3
Indonesian women settled Madagascar, the people made less ____________ on natural resources, the food and water ________
supply, demand
scarcity, products
demand, supply
room, food
4
How are supply and demand related?
The price of a product goes down.
The price of the product goes up.
The demand for a product determines if the supply is sufficent.
Stores want to have a good supply
5
What is a profit?
left over money after creating the product and researching markets.
price of an item after it is shipped to a store.
extra money left over after a company gets a product to consumers.
Amount of money it costs to make a product.
6
How might Johannes Gutenberg’s printing press, which increased the supply of books, impact the price of this product?
The cost of books went down due to the lower quality of the new books
Books probably cost less because there was a larger supply available
The price probably went up because there were many of them available
The cost of books remained the same because of the demand for books.
7
What does the information on the graph below tell you?
The supply of the item is decreasing.
The demand for the item must be high.
The supply of the item is too low.
The price of the item is getting higher.
8
Why do prices get higher?
Products are in low demand but there is a good supply.
Making and shipping products is expensive.
The demand of the item is low and the supply is low.
Items are in high demand and low supply.
9
If an advertisement says a limited number of an item is produced, the advertisement wants sell based on what idea?
is appealing to the idea of owning something others don’t.
is letting consumers know that this item won’t last long.
use the idea of scarcity to make consumers buy it.
wants you to feel that you are getting a limited edition product.
10
How are the prices of both goods and services determined?
too many people with the item
the price is high
based on supply and demand
the price is low

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