Chapter 4&5 Test Lists

Question 1

List 5 factors that influence the demand of goods

Answer 1

1) Tastes and preferences of the consumer
2) income of the ppl
3) change in prices of related products
4) Advertisement expenditures
5) the number of consumers in the market

Question 2

List 5 factors that influence the supply of goods

Answer 2

1) price
2) cost of production
3) natural condition
4) technology
5) Government policies

Question 3

List 2 major types of supply elasticity

Answer 3

1) elastic supply- a slight change in price will lead to a drastic change in demand
2) inelastic supply- is when a change in the price will have little to no effect on demand