Responses
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.
The California drought decreases the supply of lemons, so you just pay more for them and continue to make lemonade.
The California drought decreases the supply of lemons, so you just pay more for them and continue to make lemonade.
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.
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.
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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 example illustrates how a decrease in the supply of lemons (due to the drought) leads to a shift in the product being offered (from lemonade to limeade) in response to changes in supply and demand.
