Demand And Supply

Question 1

A market

Answer 1

A Market is a place where buyers and sellers interact and trade goods and services

Question 2

Final market

Answer 2

Final Markets: actual locations where goods are bought and sold e.g. farmers market, supermarket

Question 3

Factor markets

Answer 3

Factor Markets: where factors of production are bought and
sold e.g. labour market and property market

Question 4

Commodities market

Answer 4

Commodities Markets: where raw materials used in production are bought and sold e.g. oil, gold

Question 5

Global market

Answer 5

Global Markets e.g. Ebay National Markets e.g. Done Deal

Question 6

Black market

Answer 6

Where goods are sold illegally

Question 7

Demand

Answer 7

Demand is the quantity of a product that consumers are willing to buy at a given price.

Question 8

Supply

Answer 8

Supply is the quantity of a product that producers are willing to sell at a given price.

Question 9

Law of demand

Answer 9

● If the price of a product rises the quantity demanded falls
● If the price of a product falls the quantity demanded rises

Question 10

Law of supply

Answer 10

If the price of a product rises,the quantity supplied rises

If the price of a product falls,the quantity supplied falls

Question 11

Demand curve

Answer 11

Demand Curve: This is a graph that illustrates the expected demand for a product at different price levels

Question 12

ALT

Answer 12

A = Axis (Number & spread out your Axis evenly e.g. go
up in 5’s or 10’s)

L = Label (Label your Axis: Price/Quantity)

T = Title (Give your graph a meaningful title)

Question 13

Supply curve

Answer 13

Supply Curve: This is a graph that illustrates the quantity of a product that a seller will supply at different price levels

Question 14

Market equilibrium

Answer 14

Market Equilibrium: In the marketplace, supply and demand interact until a balance or equilibrium position is reached.

This occurs when Supply is EQUAL to Demand

This point means that all sellers are willing to supply at this price and all buyers are willing to buy at this price

Question 15

Movement along a demand curve

Answer 15

Movement Along a Demand Curve: This is caused by a change in the price of the good itself.

Question 16

Shift in a demand curve

Answer 16

Shift in Demand Curve: This is caused by a change in any non-price factor affecting demand. E.g. a change in consumer income. A shift to the right results in an increase in the quantity demanded, while a shift to the left causes a fall in the quantity demanded.

Question 17

Shift in supply curve

Answer 17

Shift in Supply Curve: This is caused by a change in any non-price factor of supply e.g.cost of production.

A shift to the right results in an increase in the quantity supplied, while a shift to the left causes a fall in the quantity supplied.

Question 18

Movement along a supply curve

Answer 18

Movement Along a Supply Curve: This is caused by a change in the price of the good itself.