Demand And Supply Flashcards
1
Q
Demand definition
A
The amount that consumers are willing and able to buy at a certain price
2
Q
Supply definition
A
The amount that firms are willing and able to produce at a given time
3
Q
On a curve what causes a contraction?
A
An increase in price
4
Q
On a curve what causes an extension?
A
A decrease in price
5
Q
What are the influences on demand?
A
-External shocks
-Seasonality
-Competitor prices
-Income levels
6
Q
What causes a shift of a curve?
A
Increase or decrease of demand/supply
