Choosing to Spend Flashcards
1
Q
Demand
A
the quantity of a good or service that consumers are willing and able to buy at a particular price
2
Q
The law of demand
A
more will be purchased if the price is low
3
Q
Factors affecting Demand
A
income levels of customers, marketing and promotion and degree of brand loyalty, prices of substitutes, tastes and fashion
4
Q
Supply
A
the quantity of a good or service that businesses will offer for sale at a given price
5
Q
Factors affecting Supply
A
cost of raw materials, wage rates, productivity of the employees
6
Q
Market
A
exists when buyers (customers, demand) meet suppliers (businesses, supply)
7
Q
Market Price
A
the price that buyers and sellers agree on for a particular good or service
8
Q
Competition
A
the process of trying to beat others e.g. trying to gain more customers
