DECA Hospitality Services Team Decision Making Practice Exam

If a Vermont ski shop has not yet received its November shipment of ski supplies, what can be expected to happen to prices of existing stock?

1. Decrease

2. Stay the Same

3. Increase

4. Become Unavailable

The correct answer is: Increase

When a Vermont ski shop is awaiting a shipment of ski supplies, it creates a situation of limited availability for those items. Since supply is curtailed and the demand for ski supplies typically remains consistent or even increases as the ski season approaches, this imbalance often leads to price adjustments. In economic terms, when the supply of a good decreases and demand remains the same or increases, prices are likely to rise. The ski shop may raise prices to capitalize on the urgency of customers looking to purchase equipment before it becomes scarce. This expectation aligns with common market behaviors, where scarcity tends to drive prices upward. Therefore, in the given scenario, one can reasonably anticipate an increase in the prices of existing stock.