Demand And Supply

Question 1

What is market?

Answer 1

A place where buyers and sellers interact for trade (online or irl)

Question 2

What is demand?

Answer 2

The quantity of a product consumers are willing to buy at a given price

Question 4

What if effective demand?

Answer 4

A willingness to buy, backed up by an ability to pay

Question 5

What is supply?

Answer 5

The quantity of a product producers are willing to make available for sale at a given price

Question 6

What is equilibrium?

Answer 6

The price point where the quantity supplied will equal the quantity demanded

Question 7

What is disequilibrium?

Answer 7

Where there is excess demand or supply, this will eventually force the economy back into equilibrium

Question 8

What are the influences of price in demand?

Answer 8

For most goods and services demand will increase when price is reduced and demand will fall when price increases

Question 9

What are the influences of price on supply?

Answer 9

For most goods and services supply will fall when price drops and supply will increase when the price is increased

Question 10

Factors affecting demand (other than price)

Answer 10

Price of substitute products, population increase, advertising, price of complementary goods, price expectations, income levels, seasonal factors, fads and fashions

Question 11

Factors effecting supply (other than price)

Answer 11

Number of suppliers, environmental conditions, production and development costs, price of related goods, expectations of sellers, technology and government intervention