How Does Increase and Decrease in Supply Work?

Imagine you have a toy store, and you’re the boss, when more toys come in, that’s an increase in supply; when fewer toys come in, that’s a decrease in supply.

If your toy store gets extra toys from the factory, like 10 new action figures instead of just 5, you have more stuff to sell. That means people can buy toys easier, it's like having more candy at the snack table; everyone is happy!

Now, if only 2 action figures come in instead of 5, that’s a decrease in supply. You have fewer toys to share, so people might not find their favorite toy as easily, it's like having less candy at snack time; some kids might leave hungry.

Just like your toy store, when more stuff is available, it's easier for everyone to get what they want. And when less stuff comes in, it can be harder to find the things you love! Imagine you have a toy store, and you’re the boss, when more toys come in, that’s an increase in supply; when fewer toys come in, that’s a decrease in supply.

If your toy store gets extra toys from the factory, like 10 new action figures instead of just 5, you have more stuff to sell. That means people can buy toys easier, it's like having more candy at the snack table; everyone is happy!

Now, if only 2 action figures come in instead of 5, that’s a decrease in supply. You have fewer toys to share, so people might not find their favorite toy as easily, it's like having less candy at snack time; some kids might leave hungry.

Just like your toy store, when more stuff is available, it's easier for everyone to get what they want. And when less stuff comes in, it can be harder to find the things you love!