1.2.3 Interaction Of Supply And Demand Flashcards
1
Q
What is equilibrium price
A
Price where quantity demanded is equal to the quantity supplied
2
Q
How does an increase in competitions sales effect Marks and Spencers demand and supply curves
A
It leads to a fall in demand, price and quantity for M+S.
demand curve shifts down to the left
3
Q
How does the cost of transporting goods effect demand and supply curve
A
Leads to a fall in supply as the cost has increased. This means price has increased but quantity has decreased
4
Q
An increase in the amount of advertising done
A
Leads to an increase in demand, price and supply.
5
Q
Move suppliers
A
Supply increases, price decreases and quantity increases.
