Market,supply And demand Flashcards
What is supply
The amount of a product that suppliers offer at a given price
What is a market
A place where buyers and sellers meet in order to exchange goods and services for money
What is demand
The quantity of good/ service that buyers wish to purchase at a given price
When prices are high demand is….
Low
When prices are low demand is….
High
What direction does the demand slope go
Downwards
If price was high amount of supply would be..
High
If price was low quantity supplied would be ..
Low
What type of relationship is supply
A direct relationship
What type of relationship is demand
Inverse relationship
What are 7 factors that affect demand
Income of consumers Price of alternatives Tastes and trends Changes in population Attitudes Advertising Government policies
What are 4 factors that affect supply
The weather
Cost of production
Changes in production techniques
Government policies
What are the 4 types of market
Commodity
Oligopoly
Monopoly
Competitive
What is a commodity market
It’s where large firms sell identical products
What is a competitive market
Where large firms are in the market but there isn’t a dominant business in the market share
