Markets And Demand

Question 1

ᴍᴀʀᴋᴇᴛ

Answer 1

Where buyers and sellers come together and transaction take place

Question 2

Price mechanism

Answer 2

Allocations of resources where prices
changes in response to the supply and demand

Question 3

ɪɴᴠɪsɪʙʟᴇ ʜᴀɴᴅ

Answer 3

𝑀𝑒𝑡𝑎𝑝ℎ𝑜𝑟 𝑓𝑜𝑟 𝑡ℎ𝑒 𝑢𝑛𝑠𝑒𝑒𝑛 𝑓𝑜𝑟𝑐𝑒𝑠 𝑡ℎ𝑎𝑡 𝑚𝑜𝑣𝑒𝑠 𝑡ℎ𝑒 𝑓𝑟𝑒𝑒 𝑚𝑎𝑟𝑘𝑒𝑡 𝑒𝑐𝑜𝑛𝑜𝑚𝑦

Question 4

𝑊ℎ𝑎𝑡 𝑑𝑜𝑒𝑠 𝑖𝑡 𝑚𝑒𝑎𝑛 𝑓𝑜𝑟 𝑡ℎ𝑒 𝑑𝑒𝑚𝑎𝑛𝑑 𝑖𝑓 𝑝𝑟𝑖𝑐𝑒𝑠 𝑟𝑖𝑠𝑒

Answer 4

𝑇ℎ𝑒 𝑑𝑒𝑚𝑎𝑛𝑑 𝑓𝑎𝑙𝑙𝑠

Question 5

𝑊ℎ𝑎𝑡 𝑑𝑜𝑒𝑠 𝑖𝑡 𝑚𝑒𝑎𝑛 𝑓𝑜𝑟 𝑑𝑒𝑚𝑎𝑛𝑑 𝑖𝑓 𝑝𝑟𝑖𝑐𝑒𝑠 𝑓𝑎𝑙𝑙?

Answer 5

𝑇ℎ𝑒 𝑑𝑒𝑚𝑎𝑛𝑑 𝑟𝑖𝑠𝑒𝑠

Question 6

𝐼𝑛𝑑𝑖𝑣𝑖𝑑𝑢𝑎𝑙 𝑑𝑒𝑚𝑎𝑛𝑑

Answer 6

𝐼𝑡 𝑖𝑠 𝑡ℎ𝑒 𝑠𝑖𝑛𝑔𝑙𝑒 𝑐𝑜𝑛𝑠𝑢𝑚𝑒𝑟 𝑖𝑛 𝑡ℎ𝑒 𝑚𝑎𝑟𝑘𝑒𝑡

Question 7

𝑀𝑎𝑟𝑘𝑒𝑡 𝑑𝑒𝑚𝑎𝑛𝑑

Answer 7

𝑆𝑢𝑚 𝑜𝑓 𝑑𝑒𝑚𝑎𝑛𝑑 𝑓𝑟𝑜𝑚 𝑐𝑜𝑛𝑠𝑢𝑚𝑒𝑟𝑠 𝑖𝑛 𝑡ℎ𝑒 𝑚𝑎𝑟𝑘𝑒𝑡

Question 8

𝐸𝑓𝑓𝑒𝑐𝑡𝑖𝑣𝑒 𝑑𝑒𝑚𝑎𝑛𝑑

Answer 8

𝑊ℎ𝑒𝑛 𝑑𝑒𝑠𝑖𝑟𝑒 𝑡𝑜 𝑏𝑢𝑦 𝑎 𝑝𝑟𝑜𝑑𝑢𝑐𝑡 𝑖𝑠 𝑏𝑎𝑐𝑘𝑒𝑑 𝑢𝑝 𝑏𝑦 𝑡ℎ𝑒 𝑎𝑏𝑖𝑙𝑖𝑡𝑦 𝑡𝑜 𝑝𝑎𝑦 𝑓𝑜𝑟 𝑖𝑡

Question 9

𝐷𝑒𝑟𝑖𝑣𝑒𝑑 𝑑𝑒𝑚𝑎𝑛𝑑

Answer 9

Demand of a product or resources that is driven by the demand for another product or resources

Question 10

𝐶𝑒𝑡𝑒𝑟𝑖𝑠 𝑝𝑎𝑟𝑖𝑏𝑢𝑠

Answer 10

𝐴𝑠𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛 𝑡ℎ𝑎𝑡 𝑎𝑙𝑙 𝑓𝑎𝑐𝑡𝑜𝑟𝑠 𝑎𝑟𝑒 ℎ𝑒𝑙𝑑 𝑐𝑜𝑛𝑠𝑡𝑎𝑛𝑡 𝑒𝑥𝑐𝑒𝑝𝑡 𝑜𝑛𝑒- 𝑝𝑟𝑖𝑐𝑒 𝑜𝑓 𝑝𝑟𝑜𝑑𝑢𝑐𝑡
Isolates the effect of one variable on another variable

Question 11

What does it mean when there is an outward shift of demand?

Answer 11

More is demanded at each price

Question 12

WHat does it mean when there is an inward shift of the demand curve

Answer 12

Less is. demanded at each price

Question 13

Causes of shift in demand
(5 ᴄᴀᴜsᴇs)

Answer 13

⁎ɪɴᴄʀᴇᴀsᴇ ɪɴ ɪɴᴄᴏᴍᴇ
⁎ʀɪsᴇ ɪɴ ᴘʀɪᴄᴇ ᴏғ sᴜʙsᴛɪᴛᴜᴛᴇ
⁎ғᴀʟʟ ɪɴ ᴘʀɪᴄᴇ ᴏғ ᴄᴏᴍᴘʟᴇᴍᴇɴᴛ
⁎ᴄʜᴀɴɢᴇ ɪɴ ғᴀsʜɪᴏɴ/ᴛᴀsᴛᴇ
⁎ᴘᴏᴘᴜʟᴀᴛɪᴏɴ ᴄʜᴀɴɢᴇs

Question 14

sᴜʙsᴛɪᴛᴜᴛᴇs

Answer 14

ɢᴏᴏᴅs ɪɴ ᴄᴏᴍᴘᴇᴛᴇᴛɪᴠᴇ ᴅᴇᴍᴀɴᴅ ᴀɴᴅ ᴀᴄᴛ ᴀs ᴀ ʀᴇᴘʟᴀᴄᴇᴍᴇɴᴛ ғᴏʀ ᴀɴᴏᴛʜᴇʀ ᴘʀᴏᴅᴜᴄᴛ

Question 15

ᴄᴏᴍᴘʟᴇᴍᴇɴᴛs

Answer 15

When the demand of a good causes a fall or rise in demand of another good

Question 16

What does it mean when there is an increase in income of consumers

Answer 16

Increase in income means we can purchase goods and services. If income falls, there is a decrease in demand

Question 17

Discretionary income

Answer 17

money left over after a person pays their taxes and for essential goods and services like housing, mortagage.

Question 18

Supply

Answer 18

Quantities of good and services the producer is willing to and able to supply at each price

Question 19

Factors determining supply (4)

Answer 19

✯Price
✯Cost
✯Taxation
✯Subsidies

Question 20

why do business charge higher prices?

Answer 20

High price = reduced cost of production = more businesses supply

Question 21

fall in cost

Answer 21

Fall of cost means businesses supply more as it doesnt cost more to increase production

Question 22

Aim of taxation

Answer 22

Gov.t putting taxt on goods will reduce the amount produced

Question 23

Subsidies

Answer 23

Payment for business to encourage more production

Question 24

Why would supply shift to the left?

Answer 24

✴There is an increase in cost
✴Tax put on goods

Question 25

Equilibrium

Answer 25

State of rest, where price and quantity are stable

Question 26

𝐷𝑖𝑠𝑒𝑞𝑢𝑖𝑙𝑖𝑏𝑟𝑖𝑢𝑚

Answer 26

Price and quantity are not stable

Question 27

Demand

Answer 27

Quantity that consumers are willing and able to buy at a given price in each time period

Question 28

Composite Demand

Answer 28

Where goods have more than one use eg milk- yogurt, cheese,cream