markets

Question 1

how are prices for goods/services are determined?

Answer 1

by the interaction of demand & supply

Question 2

what is a market?

Answer 2

any place that brings buyers and sellers together to trade at an agreed price

Question 3

what are the two types of markets?

Answer 3

physical or virtual

Question 4

how do buyers agree on the price?

Answer 4

by purchasing the good/service

Question 5

how does a buyer show they do not agree on the price?

Answer 5

they do not purchase the good/service

Question 6

when will sellers be happy with the the rate/quantity of sales?

Answer 6

at the equilibrium price

Question 7

what does the equilibrium price determine?

Answer 7

buyers are satisfied that the products provides benefits worth paying for

Question 8

when is equilibrium reached?

Answer 8

when demand equals supply

Question 9

what happens if the price is set above the equilibrium?

Answer 9

supply would be greater then demand and there would be a surplus

Question 10

what happens if the price is set below the equilibrium?

Answer 10

demand would be greater then supply and there would be a shortage

Question 11

how many diagrams are there that can be used to show the causes and consequences of changes to the non-price factors of demand and supply?

Answer 11

four

Question 12

what does a rise in demand cause do to the demand curve?

Answer 12

causes a shift to the right

Question 13

what happens to the demand curve if there is a fall in demand?

Answer 13

there will be a shift to the left

Question 14

what does a rise in supply cause the supply curve to do?

Answer 14

shift to the right

Question 15

what does a surplus cause the price to do?

Answer 15

fall

Question 16

what happens to the supply curve if there is a fall in supply

Answer 16

a shift to the left

Question 17

what does a shortage cause the price to do?

Answer 17

rise