3.3

Question 1

identify 2 market forces
(DS)

Answer 1

demand and supply

Question 2

3 examples of factors that influence demand
STCST

Answer 2

• Special times of the year like christmas (public holiday), summer break( school holiday) and AFL grand final( major sporting event)

-change in seasons which creates seasonal demand because it affects people’s food clothing and leisure selection

-technology becuase as it develops gives us new & better products e.g is the demand for the latest apple smartphones

Question 3

what does the law of demand say

Answer 3

it says that when the price of a product rises then the quantity demanded will fall. Likewise when the price of a product falls the quantity demanded will rise

Question 4

2 examples of factors that influence supply
(NTMPND)

Answer 4

• New technologies and methods of production which make production more efficent and less expensive
  -Natural disaters for e.g bushfires and floods may affect the supply of resources such as farming and mining

Question 5

what is market equilibrium

Answer 5

the price at which the amount sellers are willing to supply and buyers are willing to demand.

Question 6

why is strong competition between markets good

Answer 6

it is good because it provides the most efficent way for both buyers and sellers to decide how they will allocate their resources.