demand

Question 1

what is a market

Answer 1

something that brings buyers and sellers together

Question 2

demand

Answer 2

the amount of a good or service buyers are willing and able to purchase

Question 3

demand schedule

Answer 3

is a table that lists the quantity of a good that consumers in a market will buy at a given price

Question 4

demand curve

Answer 4

a graph that shows the quantity demanded at a given price

Question 5

market demand

Answer 5

is the sum of quantities demanded by all consumers in a market

Question 6

law of demand

Answer 6

an increase in price will cause a decrease in quantity demanded and vice versa

Question 7

the law of diminishing the marginal utility

Answer 7

why the demand curve is downward sloping

- each additional unit of a good or service that is consumed brings less satisfaction

Question 8

demand determinants (changes in demand)

Answer 8

1. the number of buyers in the market
2. income (normal products- income increase causes a rightward shift but causes a leftward shift for inferior products such as second-hand goods)
3. price of other products
4. consumer preferences (a new trend)
5. consumer expectations (if they expect a price to go down for a specific item)

Question 9

difference between a substitute and complementary products

Answer 9

both fall under the determinant for the price of products,
however:
substitute products: products that can be substituted for another, example butter and margarine
complementary products: products that go hand in hand, example printers and ink

Question 10

supply

Answer 10

willing to sell at various prices

Question 11

supply schedule and supply curve

Answer 11

same as demand schedule and demand curve, however, a supply curve moves from bottom left to top right

Question 12

law of supply

Answer 12

an increase in price will increase the quantity supplied (Qs) and vice versa

Question 13

supply determinants

Answer 13

1. the number of producers
2. resource prices
3. improvement/disimprovement in technology
4. changes in nature
5. prices of related products
6. producer expectations

Question 14

equilibrium

Answer 14

the point where supply curve and demand curve intersetc

Question 15

surplus

Answer 15

there is excess supply and price is pushed down

Question 16

shortage

Answer 16

there is excess demand and price is pushed up

Question 17

changes in equilibrium

Answer 17

the rightward shift in demand curve pushes up both equilibrium price and quantity
the leftward shift in demand curve pushes down both equilibrium price and quantity
the rightward shift in supply curve pushes equilibrium price down and equilibrium quantity up
the leftward shift in supply curve pushes equilibrium price up and equilibrium quantity down