Demand And Supply

Question 1

What is Demand?

Answer 1

The amount of a good / service that customers are willing and able to buy at any given price

Question 2

What is supply?

Answer 2

The amount of a good / service that sellers are willing and able to sell at any given price

Question 3

What is equilibrium?

Answer 3

The situation in a market where demand is equal to supply. I.e. both parties are happy as customers can buy what they want and shops have no unsold stock.

Question 4

What goes along the X axis on a supply and demand graph?

Answer 4

Quantity demanded

Question 5

What goes along the Y axis on a supply and demand graph?

Answer 5

Price

Question 6

What happens to price when there is an excess of supply within a market?

Answer 6

Prices decrease

Question 7

What happens to price due to an excess of demand in a market?

Answer 7

Prices increase

Question 8

What happens to demand when prices increase?

Answer 8

Demand goes down

Question 9

What happens to demand when prices decrease?

Answer 9

Demand increases