Demand, Supply, Equilibrium

Question 0

Six factors affecting the demand curve

Answer 0

Price of other goods
Population
Disposable income
Advertising
Tastes and Pref.
Advertising

Question 1

Demand is made up of what 4 factors?

Answer 1

Price
Quantity
What they are willing to buy
At a particular time

Question 2

Only factor causing movement along the demand curve

Answer 2

Price

Question 3

Define Demand

Answer 3

quantity of goods and services consumers are willing to buy at a particular price at a particular time

Question 4

Supply

Answer 4

Quantity of goods or services firms are willing to produce at a particular price at a particular time

Question 5

Non price factors affecting supply

Answer 5

Prices of inputs, cost of production

• prices of other goods
• technology
• expectations of producers

Question 6

Equilibrium

Answer 6

A state of unchange, When demand and supply are equal

Question 7

Market Mechanism alleviates shortages

Answer 7

Consumers buying all of the widjets, will bid for higher therefore price rises
- when price rises, firms are willing to sell more

Question 8

Market mechanism alleviates surplus

Answer 8

• price will go down due to no one buying the product

- this will mean demand will rise therefore sales will occur