Markets (1.2.3)

Question 1

In a market how are the prices of goods/services determined?

Answer 1

By the interaction of demand and supply

Question 2

What is equilibrium on a Supply and Demand Graph?

Answer 2

its the point where the two lines cross over and its the point at which the price and quantity are perfect and there will be no excess.

Question 3

What does the equilibrium on a S +D graph mean?

Answer 3

Based on interaction with buyers, sellers will gradually adjust their prices until there is an equilibrium price and quantity that works for both parties. At equilibrium price, sellers will be satisfied with sales and buyers will be satisfied with product they are paying for

Question 4

What shifts are these four things on a graph?
-Rise in Demand
-Fall in Demand
-Rise in Supply
-Fall in Supply

Answer 4

1. Rise in Demand- Shift to right
2. Fall in Demand- Shift to left
3. Rise in Supply- Shift to right
4. Fall in Supply- Shift to left