1.2.3 Markets Flashcards
1
Q
What happens with the interaction of buyers & sellers?
A
- The interaction of buyers and sellers will provide an equilibrium price in a market where supply & demand are equal
2
Q
On a supply & Demand graph what happens at the equilibrium?
A
The point where the supply curve meets the demand curve is the equilibrium point.
- At the equilibrium sellers will be satisfied with the rate/quantity of sales
- Buyers are satisfied that the product provides benefits worth paying for
3
Q
Where do you draw the supply & demand lines on a supply & demand graph?
A
Demand (down)- to the left diagonal
Supply- to the right up
4
Q
Where do you move the line if a positive thing occurs e.g. an increase in supply & demand?
A
Positive thing- Shift curve to the right
5
Q
Where do you move the line if a negative thing occurs e.g. an fall in supply & demand?
A
Negative thing-Shift curve to the left
