Lesson: Supply and Demand

Question 1

Quantities of a particular good and service customer are willing and able to buy at different possible prices.

Answer 1

Demand

Question 2

Customers buy more of a good when its prices decreases and less when its prices increase.

Answer 2

The Law of Demand (When price goes up, demand goes down and when price goes down, demand goes up. )

Question 3

Factors of Demand:

Answer 3

Changes in Income
Prices of Related Goods
Price Expectation
Changes in the number of buyers ( Population )
Changes in Tastes and Preferences

Question 4

good that can be used in place of another

Answer 4

substitute

Question 5

The amount of a product that is offer for sale at all possible prices in the market.

Answer 5

Supply

Question 6

Tendency of supplier to offer more of a good at a higher price and less at
lower prices.

Answer 6

The Law of Supply (When Price goes up, Supply goes up, when price goes down, supply goes down.)

Question 7

The Law of Demand
describes how price affects.

Answer 7

CONSUMERS

Question 8

The Law of Supply describes how price affects.

Answer 8

PRODUCERS

Question 9

DETERMINANTS OF SUPPLY:

Answer 9

Cost of Production/Inputs
Technology
Number of Sellers
Taxes and Subsidies
Weather

Question 10

Cost of Production/Inputs:

Answer 10

When production costs goes up, supply goes down, when production costs goes down, supply goes up.

Question 11

Refers to techniques or methods of production.

Answer 11

Technology

Question 12

More sellers or more factories means an increase in supply. On the other hand, less sellers or factories less supply.

Answer 12

Number of Sellers

Question 13

Production of goods also depends on

Answer 13

Weather

Question 14

supply and demand intersect

Answer 14

Equilibrium price