In economics, demand for a product usually grows gradually. Unfortunately, a business owner has to make large investments in lump sums to increase capacity to meet the growing demand. For example, investment in production facilities is made in large “jumps” while demand grows gradually.

1. Role-Play Imagine that Electro Toys has experienced great demand for its products and services, and its owner is thinking about opening two more stores, a major investment. How can she be sure that demand will continue to grow and use the additional supply she offers? With a partner, take on the roles of the shop’s owner and a friend of hers who invested in her business when she fi rst started it. They are discussing the business owner’s thoughts about whether to expand.

2. Write About It Write a script about this discussion.