2.1 Demand And Supply Curves

Question 1

What’s the definition of Notional Demand?

Answer 1

The desire for a product

Question 2

What’s the definition of Effective Demand?

Answer 2

The willingness and ability to pay for a product

Question 3

What’s the definition for Demand?

Answer 3

The quantities of a product that consumers are willing and able to purchase at different prices.

Question 4

What’s the definition of ceteris paribus?

Answer 4

The assumption that all else is kept constant.

Question 5

What are the 7 factors affecting affecting demand?

Answer 5

Population
Advertising
Substitutes (Price Of)
Income
Fashion and Tastes
Intrest Rates
Complements Price

Question 6

What’s the definition of supply?

Answer 6

The quantity that producers are willing and able to supply at different prices.

Question 7

What are the 6 factors affecting supply?

Answer 7

Cost of production
Subsides
Weather Conditions
Indirect Tax
Firms (Number of)
Technology (Productivity)

Question 8

What’s the difference between an individuals demand and market demand?

Answer 8

• Individual demand is a sole persons willingness and ability to purchase a good at different price levels
• Market demand is the summation of all individuals