Demand and Supply Flashcards
(6 cards)
1
Q
What is demand?
A
Demand is where a person is willing and able to buy a good/service.
2
Q
What can shift demand?
A
Population and age
Advertising
Substitute goods
Interest rates
Seasons
Income
Complementary goods
3
Q
What is assumed of consumers?
A
They want to maximise utility.
4
Q
What is assumed about firms?
A
They want to maximise profits.
5
Q
What can shift supply?
A
Productivity
Indirect tax
No. of suppliers
Technology
Subsidy
Weather
Costs of production
6
Q
What is supply?
A
Supply is where a producer is willing and able to create a good and service to sell in a market.
