Laws

Question 1

What is the law of demand?

Answer 1

If prices decrease consumers buy more so demand increases. If prices increase consumers buy less so demand decreases.

Question 2

What is the law of supply?

Answer 2

As price increases, supply should increase. As price decreases, supply should decrease.

Question 3

What are the conditions that create demand?

Answer 3

price
accessibility
customer awareness
supply

Question 4

What are some factors that can affect demand?

Answer 4

Change in consumer income.
Change in consumer tastes.
Change in future expectations.
Change in population.

Question 5

what are conditions that affect supply?

Answer 5

The cost of producing or providing a good or service.
The price consumers are willing to pay for it.

Question 6

Factors that change supply

Answer 6

Number of producers.
Changes in price.
Changes in technology.
Changing expectations for the future.
Changing production costs.

Question 7

What are the 5 things you add in the decision-making model?

Answer 7

Define Decision: Summarize the issue
List alternatives
List advantages and disadvantages
Make a decision
Evaluate your decision: Some time after making it.