The Price of Toys and Games
Many families celebrate holidays by exchanging gifts. If you haven’t made your shopping list, you’d better sharpen your pencil. In past years, many of the most popular toys and games have been hard to find. What will you do if you get to the store or go on the Internet and the item you want is not available?
Be prepared to make hard choices in case any of the items on your list are scarce.
Supply and demand are part of our economy. When many people want to buy a product, the demand is high. If there isn’t enough of an item for everyone who wants it, then the supply is low. When supply is low, we say the item is scarce. Did you know that when a product is scarce, the price often goes up? Will you be paying more for the hottest toys and games this year?
Due to the slower economy, we are seeing changes in the market. Some toy makers have decided to sell smaller, more affordable toys. Also, producers of gaming consoles like the Nintendo Wii and the XBOX 360 have reduced their prices to increase sales. The demand for these systems had been low. Do you think demand will go up for these game consoles if the price goes down? If the demand goes up more than the producers expect, there may be a shortage of these systems.
Producers of video gaming consoles like the Nintendo Wii and the XBOX 360 have reduced their prices to increase sales.
If your family is buying gifts for your holiday tradition, think ahead. Be prepared to make hard choices in case any of the items on your list are scarce. Can you buy something else instead? Can you wait until the item is no longer scarce and the price comes down? It is the buyer’s decision. Have you sharpened your pencil yet?
TLX News Journal Activity:
Imagine you want to buy a friend a gift. Choose an item and compare prices from several catalogs or newspaper ads for the item. Cut out the ads and glue or tape them in your journal.
