GED Practice Question…Economics

Blog Category: Economics — Blogged by: Becca on November 26, 2007 at 3:04 pm

I said I’d come up with a practice question for GED economics, and since I’ve been talking about supply and demand (who will buy what for how much), here goes.

It’s the Christmas shopping season!!! Black Friday is what they call the day after Thanksgiving, when businesses supposedly sell enough stuff to put them “in the black,” in other words making a profit for the year.

Businesses run special sales on Black Friday to bring in more people. (Ever gone to one? They’re crazy!! Like, Mervyn’s opened at 4:00 a.m.!!)

According to the theory of supply and demand (see my last post), the businesses:

1) Will want to sell less of the special sale promotions.

2) Will want to sell more of the special sale promotions.

3) Will want to sell a normal amount of the special sale promotions.

4) Are not allowed to reduce the prices below a certain point.

5) None of the above.

What do you think? I’ll catch you next time with the answer.

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