Extra Flashcards
1
Q
Social factors influencing demand
A
- social awareness
- social norms
- social pressures
2
Q
Emotional factors influencing demand
A
- emotional arousal (affect demand for health insurance after major incidents)
- binge drinking and eating at times of personal insecurity
- demand for productions such as football season tickets and antiques
3
Q
Why does the supply curve slope upwards from left to right
A
- the profit motif
- production and costs
- new entrants coming into the market
4
Q
What is market supply
A
Total supply brought to the market by producers at each price
5
Q
How does a fall in the exchange rate change production costs
A
A fall in the XR increases the prices of imported components and raw materials and will lead to a decrease in supply
6
Q
What is equilibrium
A
State of equality or balance between market demand and supply
