1.2.3 markets

Question 1

define supply

Answer 1

the amount of product or service that a business is willing and able to provide at a given price

Question 2

supply curve

Answer 2

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Question 3

define demand

Answer 3

the amount of product or service that customers are willing and able to buy at a given price

Question 4

demand curve

Answer 4

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Question 5

changes in demand due to price

Answer 5

change in price will cause a movement along the demand curve

Question 6

factors causing change in demand due to non-price

Answer 6

tastes and preferences of consumers
number of consumers
income of consumers
prices of complementary goods
cost of loans
economic growth

Question 7

changes in demand curve due to non-price

Answer 7

if consumers incomes rise, the demand curve will shift up and right

Question 8

changes in demand curve due to non-price determinants

Answer 8

if tastes for a good fall and demand falls then the demand curve will drop to the left

Question 9

factors causing a change in supply due to non-price

Answer 9

weather
technical progress
change in price of productive factors
changes in price of raw materials
changes in tax
changes in subsidies

Question 10

changes in supply due to non-price

Answer 10

if weather is good and crops flourish then supply curve will shift to the right

Question 11

changes in supply due to non-price - raw materials

Answer 11

if the cost of raw materials goes up the supply curve will shift to the left

Question 12

what does the supply curve show

Answer 12

how much of a good sellers are willing to supply at different prices

Question 13

market equilibrium

Answer 13

when quantity demanded = supply supplied the market is in equilibrium

Question 14

equilibrium price

Answer 14

the price at which supply and demand are equal