Objective 3.02
SUPPLY, DEMAND, AND PRICE
For each of the following situations, indicate whether or not changes in supply and/or demand will cause prices to Rise or Fall.
_____1. A severe flood ruins a large portion of North Carolina’s cotton crop.
_____2. Scientists find a quick way to make a synthetic substitute for silk.
_____3. You start a monogramming business, and four of your classmates also decide to start a monogramming business.
_____4. The jean factory in your town finds itself with heavy competition from Taiwan.
_____5. Because of excellent weather, the production of cotton goes up by 50 percent.
_____6. You open a ski shop just as your local mountain community opens two new ski resorts.
_____7. One of two clothing stores within a mile of your home goes into bankruptcy, leaving only one store within easy traveling distance.
_____8. You design window displays for local businesses, and your only competitor moves to another state.
_____9. Shortly after opening the only surf shop in town, two other similar stores open within five miles of your shop.
_____10. You operate a ski shop in a mountain resort area that has had very little snow for the past two seasons.
Fashion Merchandising
C-26