Demand And Supply Flashcards
(8 cards)
What is a market
A market is a place where buyers and sellers connect with each other to trade or exchange goods and services
Examples:Factor markets and Commodities markets
What is effective demand
Is a willingness to buy
What happens between demand and price
When the price goes down the demand goes up
When the demand goes down the price goes up
What is Demand
Demand means the quantity of a product that buyers are willing to purchase at a given price
Other factors affecting demand
1.Price of substitute products
2.Advertising
3.Price expectations of buyers
What is meant by supply
Supply is the quantity of a product that producers are willing to sell at a given price
Other factors affecting supply
1.Environmental conditions
2.Technology
What is a demand curve
A demand curve is a graph that illustrates the expected demand for a product at various price levels
