-supply and demand-

Question 1

What is demand?

Answer 1

The quantity that customers are willing sonf able to buy at a given piece within a given period of time

Question 2

What is the demand curve?

Answer 2

The higher the price, the lower the quantity demanded and visa versa.
x asis = quantity demanded.
y axis = price.
The quantity demanded of a products in the market at different price points

Question 3

Causes for changes in demand?

Answer 3

Price.
Incomes.
Fashion, tastes, preferences.
Advertising and branding.
External shocks (e.g loss of consumer confidence in brand/product).
Seasonal factors

Question 4

What is supply?

Answer 4

The quantity of a good/service that a producer is willing and able to supply onto the market at a given price within a given time period.

Question 5

What is the supply curve?

Answer 5

As price increases, as does supply (with all other factors remaining consistent).
Producers respond profit motives.
x axis = quantity of supply.
y axis = price

Question 6

Causes for change in supply?

Answer 6

Costs of production.
External shocks.
New technology.
Taxation and subsidies.

Question 7

How do costs of production affect supply?

Answer 7

Lower unit costs mean that a business can supply more at each price, e.g via higher productivity.
Higher unit costs cause an inward shift of supply, e.g rise in wage rates, energy prices/ raw materials.