Demand And Supply

Question 1

Law of demand

Answer 1

Negative inverse relationship, when quantity demand goes up price goes down and vice versa

Question 2

Ceteris paribus

Answer 2

Other things remaining the same

Question 3

What effect does price have to the demand curve

Answer 3

Causes it to move up and down along the curve

Question 4

What is demand?

Answer 4

Graph of the relationship between the quantity demanded and the price of the good when all else remains the same.

Question 5

Law of supply

Answer 5

Positive relationship, when price goes up supply hoes up, when price falls so does quantity supply

Question 6

Difference between demand and quantity demand

Answer 6

Demand is effected by all other things not including price whilst quantity demand if only influenced by price

Question 7

What causes shifts

Answer 7

Shifts are caused by any other influences besides price of the final product

Question 8

What causes a supply shift

Answer 8

Any thing that influences a change in quantity supply besides final good price. Cost to produce, profit expectation, number of sellers all included.

Question 9

What causes a demand shift

Answer 9

Change in quantity demanded influenced by anything other then price.

Question 10

What is the market equilibrium

Answer 10

The meeting point where quantity supply equals quantity demanded

Question 11

What causes a reach to equilibrium

Answer 11

Price is the markets regulator, use price to regulate shortage and surpluses and reach the equilibrium

Question 12

What is a surplus

Answer 12

Quantity supply is greater then quantity demand

Question 13

What is a shortage

Answer 13

Quantity supply is lesser then quantity demand