Price- Demand And Supply

Question 1

What does demand mean ?

Answer 1

Quantity of a product customers are willing or able to buy

Question 2

What is the law of demand ?

Answer 2

If price increases demand will fall

Question 3

What are the reasons for the law of demand ?

Answer 3

Lower price more people can afford it

Question 4

What does supply mean ?

Answer 4

Quantity of a product customers are willing and able to make for sale

Question 5

What is the law of supply ?

Answer 5

As price increases quantity of supply increases

Question 6

What happens when the price of supply is low ?

Answer 6

Few producers will be able to make a profit

Question 7

What happens when the price of supply is high ?

Answer 7

Producers can make a profit

Question 8

What is equilibrium ?

Answer 8

Where producers and consumers agree

Question 9

If price is low there is a shortage of … ?

Answer 9

Supply because its getting bought out

Question 10

If the price is too high there will be a … of supply ?

Answer 10

Surplus

Question 11

When producers and consumers agree on a price that is called … ?

Answer 11

Equilibrium

Question 12

What is a commodity ?

Answer 12

A product that is more or less the same whoever is selling it - e.g. petrol

Question 13

What is it hard for a business to do in a commodity market ?

Answer 13

Achieve product differentiation