markets

Question 1

go through graphs

Answer 1

x

Question 2

what happens if demand increases?

Answer 2

If demand increases
- then prices will rise
- This is because producers will react by putting up their price

• The opposite will happen if there is a fall in demand.

Question 3

what happens if supply increases?

Answer 3

If supply increases, then prices will fall.
- This is because there will be an excess supply
-producers will lower their prices in order to sell all their goods

-The opposite would happen with a fall in supply.

Question 4

define market equilibrium

Answer 4

state of equality or balance between market demand and market supply