Demand And Supply Flashcards
What is a market?
A market is a place where buyers and sellers can meet to exchange goods and services
What is Demond?
The amount of a good or service that consumers about willing and financially able to buy at various places during a period of time
What is quantity demanded?
Quantity demanded is the number of goods and services consumers are willing and financially able to buy
What is the law of demand?
The law of demand states that if the price increases keeping other things, the same then quantity demanded, will decrease and vice versa
Why is a demand curve downward sloping?
Because of the negative or inverse relationship between price and quantity demanded
Name nonprice factors that affect demand in a commodity market
- Changes in income.
- Changes in the prices and availability of other products.
- In and out of fashion products.
- Advertisement.
- Population
What is supply?
Supply is the amount of a good or service that produces about willing and financially able to produce and sell during a period of time
What is the quantity supplied?
Quantity supplied is the number of goods or services that produces a willing and financially able to produce and sell
What is the law of supply?
The law of supply states that if the price increases keeping other things the same than the quantity supplied will increase
Why does a supply curve have an upward slope?
Because a supply curve has a positive or direct relationship between price and quantity supplied
What are some causes of shifts in a supply curve?
- Changes in the cost price of the factors of production.
- Government taxation and subsidies.
- Changes in technology.
- Changes in natural factors.
What is the difference between human ones for a product and effective demand for a product?
Human want is when someone wants a good or service. Effective demand is when the customer wants a good or service and is ready to pay and purchase it, depending on their financial state and willingness.
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