KT3: 1.2.2 Supply, 1.2.3 markets

Question 1

Market price

Answer 1

the price of a commodity that has been established by the market- that is, where supply equals demand

Question 2

Supply chain

Answer 2

the whole path from suppliers of raw materials through production and storage onto customer delivery

Question 3

Supply curve

Answer 3

a line showing the quantity of goods firms want to supply at different price levels (the higher the price the more enthusiastic the supply)

Question 4

Commodity markets

Answer 4

these cover undifferentiated products such as rice, oil or gold. The principle is that every kilo is the same as every other kilo, so traders can buy and sell without needing to worry which kilo they are dealing with

Question 5

Demand curve

Answer 5

a line showing the demand for a product at different prices (the higher the price, the lower the demand)

Question 6

Market price

Answer 6

the price of a commodity that has been established by the market- that is, where supple equals demand