Question

Write a summary on how the example of the lemonade stand shows supply and demand. Type your answer below:

Answer 1

Answer:

Increase in Demand = Increase in supply and increase in prices ( especially during hot days )

Explanation:

From the example of the Lemonade stand

The supply and pricing of the Lemonade drink  will be increase when the demand for the Lemonade drinks increases, and The factors that can lead to the increase in demand of the Lemonade are ; Marketing, Temperature of the day(hot temperature) , foot traffic near your Lemonade stand.

When these factors are in the positive the ripple effect will be ; Increase in supply and prices and also an increase in demand from the customers