Supply and Demand

Question 1

What is supply

Answer 1

The amount of goods & services that are willing & able to produce at a Given Price at a Given Time

Question 2

What is demand

Answer 2

The amount of goods & services that are willing & able to purchase at a Given Price at a Given Time

Question 3

what kind of relationship does supply price have

Answer 3

Positive

Question 4

what kind of relationship does Demand price have

Answer 4

Negative

Question 5

what causes Movement along the supply curve

Answer 5

Price

Question 6

what causes movement along the demand curve

Answer 6

Price

Question 7

what are the factors that cause a shift in supply

Answer 7

Productivity
Weather
Cost of production
Technology
(P.W.C.T)

Question 8

what are the factors that cause a shift in demand

Answer 8

income
Price of other goods
Advertising
Legislation
Tastes & Fashion
(I.P.L.A.T)

Question 9

Define market supply

Answer 9

The supply of a product by all producers in the market

Question 10

Define Joint supply

Answer 10

When firms produce more than one product together

Question 11

Define competitive supply

Answer 11

when a firm can use its resources to produce more than one product

Question 12

Define individual supply

Answer 12

price of one producer

Question 13

Define individual demand

Answer 13

The demand for a product by a consumer

Question 14

Define market demand

Answer 14

The demand for a product by all consumers in a market

Question 15

Define Joint demand

Answer 15

Goods which are demanded together

Question 16

Define competitive demand

Answer 16

Demand for Goods are in competition with eachother

Question 17

Define composite demand

Answer 17

Demand for Goods with Multiple uses

Question 18

which way does the demand curve slope

Answer 18

Downwards

Question 19

which way does the supply curve slope

Answer 19

Upwards

Question 20

Define Consumer surplus

Answer 20

Difference between what a consumer is prepared to pay for a good & the price they actually pay

Question 21

Define Producer surplus

Answer 21

Difference between the price a producer is prepared to supply a good for and the price they actually receive.

Question 22

Define ceteris paribus

Answer 22

All other things being equal

Question 23

Define market equilibrium

Answer 23

supply = demand

Question 24

Define market disequilibrium

Answer 24

Supply doesn’t equal demand

Question 25

What happens to consumer surplus if price increases

Answer 25

The consumer surplus will decrease

Question 26

What happens to producer surplus if price increases

Answer 26

The producer surplus will increase

Question 27

What happens to consumer surplus if price Decreases

Answer 27

The consumer surplus will increase

Question 28

What happens to producer surplus if price Decreases

Answer 28

The producer surplus will decrease