4 - Supply and Demand Flashcards
1
Q
Demand
A
the amount of a product that consumers are willing and able to purchase at a given price
2
Q
What factors may affect demand?
A
- price of substitutes/complements
- seasonality
- changes in incomes
- change in trends/preferences ect
- demographics
3
Q
What is an external shock?
A
something outside the busines that may affect demand such as legilksation, the economy or social factors
4
Q
What is supply?
A
the amount that a supplier will offer to a market at a given price
5
Q
What factors may affect supply?
A
change in cost of production
external shocks
government subsidies
indirect taxes
new tech increasing efficienncy
