1-4 Supply And Demand

Question 1

Consumer

Answer 1

A person who buys and uses goods and services.

Question 2

Producers

Answer 2

Individuals and organizations that determine what products and services will be available for sale.

Question 3

Who sets demand?

Answer 3

The consumer

Question 4

Demand

Answer 4

The quantity of a good or service that consumers are willing and able to pay.

Question 5

Who establishes supply?

Answer 5

The producer

Question 6

Supply

Answer 6

The quantity of a good or service that businesses are willing and able to provide

Question 7

Factors influencing demand

Answer 7

If many consumers want (or demand) a particular good or service, it’s price will tend to go up.

Question 8

Factors influencing supply

Answer 8

The supply of a product can also affect the price because the supply of many of the crops and livestock raised on farms is large, prices remain low.

Question 9

Direct competition

Answer 9

A situation in which two or more businesses offer products or services that are essentially the same.

Question 10

What determines the market price/equilibrium for a product or service?

Answer 10

Supply, demand and competition.

Question 11

Market price/Equilibrium

Answer 11

The point where supply and demand are equal