Demand And Supply Flashcards
What is a market
A m i a p w b a s i a t g a s
A Market is a place where buyers and sellers interact and
trade goods and services
What are the 5 types of markets called
F m
F m
C m
G m
B m
Final Markets
Factor Markets:
Commodities Markets
Global Markets
Black Markets
What is demand
Demand is the quantity of a product that consumers are willing
to buy at a given price.
● When prices are low, the demand for a product increases
● When prices are high, the demand for a product decreases
What is supply
S i t Q o a p t p a w t s a a g p
Supply is the quantity of a product that producers are willing to
sell at a given price.
● When prices are high, the supply of a product increases
● When prices are low, the supply of a product decreases
What is the law of demand
● If the price of a product rises the quantity demanded falls
● If the price of a product falls the quantity demanded rises
What are the 3 relationships between demand and price
H c
S o c
H
Housing Crisis
Sold Out Concert
Holidays
Housing (relationships between demand and price)
i d f h i i h c t p t r
Increased demand for houses in Ireland has
caused the price to rise
Sold Out Concert (relationships between demand and price)
i d f a p c c t p o t t r
Increased demand for a popular concert causes the price of tickets to rise
Holidays ( relationships between demand and price)
H a f p r d s h a d i h a t t
Hotel and Flight prices rise during school holidays as demand is higher at this time.
What are the 8 Factors affect demand
P
F
S
A
E o b
I c
P o s g
P o c g
Price 1
Fashion 2
Season 3
Advertising 4
Expectations of buyers 5
Income levels 6
Price of substitute goods 7
Price of complimentary goods 8
Factors affect demand PRICE
Falls
And
Rises
When the price of a good goes up, goods are more expensive and the
demand will fall. When the price for a good goes down, goods are cheaper
and the demand will rise.
Factors that affect demand FASHION
A c t c, d f p w c
As consumer tastes change, demand for products will change
e.g. Furby’s were popular in 2001 but not anymore.
Factors that affect demand SEASON
D f s p c d o t o y
Demand for some products change depending on time of year e.g.
ice-cream in the summer.
Explain how advertising can affect demand
P t a h a m s a i i d
Products that are heavily advertised may see an increase in
demand. e.g. Ed Sheeran concert
Explain how expectations of buyers can affect demand
If customers expect prices to rise in the future they may demand more now.
Similarly, if customers expect prices to fall in the future, they may demand less now.