Question

during halloween, candy makers accurately anticipate the increased demand for candy for all of the parties and trick-or-treat. manufacturers work hard to make sure the supply of candy and the demand for candy increase the same amount. what will happen to the price of candy on november 1, if there were a huge storm in the area and it didn't allow for shopping in the days leading up to (and the day of) halloween?

Answer 1

The price of candy on November 1 would likely increase due to the decreased supply of candy caused by the storm. The decreased supply would cause the demand for candy to exceed the available supply, resulting in an increase in price.