Responses
There is a shortage of green paint, so the painters mix blue and yellow together and continue to paint houses green.
There is a shortage of green paint, so the painters mix blue and yellow together and continue to paint houses green.
The drought in California causes fewer lemons to be available, but limes are plentiful, so you change your product from lemonade to limeade.
The drought in California causes fewer lemons to be available, but limes are plentiful, so you change your product from lemonade to limeade.
There are more houses to be painted than before, but the painters still paint both inside and outside.
There are more houses to be painted than before, but the painters still paint both inside and outside.
The California drought decreases the supply of lemons, so you just pay more for them and continue to make lemonade.
1 answer
The scenario that best explains how a change in supply and demand causes a change in goods and services is:
The drought in California causes fewer lemons to be available, but limes are plentiful, so you change your product from lemonade to limeade.
This scenario illustrates how a change in supply (the decrease in lemons due to drought) can lead to a change in the goods (from lemonade to limeade) offered in response to market conditions.
