Demand and Supply Flashcards
1
Q
Demand
A
Demand is the quantity of a product that consumers are willing to buy at a given price.
2
Q
Supply
A
Supply is the quantity of a product that producers are willing to sell at a given price.
3
Q
Factors Affecting Demand
A
Price, Fashion, Season, Advertising, Price of Comlementary Goods, Price of Substitute Goods, Income Levels, Expectaions of Buyers.
4
Q
Factors Affecting Supply
A
Price, Price of Related Goods, Production Costs, Technology, Environment.
5
Q
Market Equilibrium
A
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.
