Supply & Demand - Chapter 13 Flashcards
What is a market?
A Market is a place where buyers and sellers interact and trade goods and services
What is the final market.
The final market is actual locations where goods are bought and sold e.g. farmers market.
What is the factors market?
where factors of production are bought and sold e.g. labour market.
What is the commodities market?
The commodities market is where raw materials used in production are bought and sold e.g. oil and gold.
Give one example of both a global and national market.
Global Market - Ebay
National Market - DoneDeal
What is the black market?
Where goods are sold illegally
What is demand?
Demand is the quantity of a product that consumers are willing to buy at a given price.
When prices are low, the demand for a product increases
When prices are high, the demand for a product decreases
What is supply?
Supply is the quantity of a product that producers are willing to sell at a given price.
When prices are high, the supply of a product increases
When prices are low, the supply of a product decreases
What factors affect demand?
Price and Advertising
Fashion - As consumer tastes change, demand for products will change e.g. fidget spinners used to be popular in 2017 but not anymore.
Season - Demand for some products change depending on time of year e.g. There is more demand for coats in the winter than in the summer.
Income Levels - If a person’s income rises, they will demand more goods and services.
What factors affect supply?
Price, Price of related goods
Technology - improvements in technology and machinery make it easier for goods to be made which increases supply
Environment - good/bad weather can affect a crop. Bad weather might mean there is less supply of wheat. Good weather might mean that there is too much supply of wheat.
Production costs - When the cost of making a product is low, more goods will be supplied as it is cheaper.
Substitute and complementary goods : what is a substitute for Colgate toothpaste? And what is a complementary good for a PS5?
Colgate toothpaste = Oral B
PS5 = PlayStation Controller.
Do you know how to do a demand curve, market equilibrium and supply curve?
