Chapter 4

Question 1

Markets

Answer 1

Any place where buyers and sellers meet to exchange goods and service

Question 2

Demand

Answer 2

Combination of qualities that someone would be willing and able to buy over a range of possible prices

Question 3

Law of demand

Answer 3

Rules stating that more will be demanded at lower prices and less at higher prices

Question 4

5 factors that influence the demand of goods

Answer 4

1. Taste and preferences of the consumer(fashions in clothes )
2. Income of people (if you can afford to pay )
3. changes in prices of related products(tea vs coffee )
4. advertising expenditure s (ads greatly influence customers )
5. the number of consumers in the market (greater the number the higher the demand).

Question 5

Supply :

Answer 5

the amount or quantity or needed or available.

Question 6

Law of supply

Answer 6

That more will be offered for sale at higher prices than at lower prices

Question 7

Influence the supply of goods

Answer 7

Prices (if prices increase supply increase and vice versa )
Cost of production=(higher lower supply )
Natural conditions =drought =lower supply )
Technology= (Better technology =higher supply
Government policies =(higher taxes = lowers supplies )

Question 8

Elasticity =

Answer 8

he ability to change or adapt

Question 9

Elasticity of supply

Answer 9

the responsivenes of quantity supplied to a change in price