Supply And Demand

Question 1

What causes a move along the curve

Answer 1

Change in price

Question 2

What is the meaning of a curve shifting to the right

Answer 2

Supply or demand has increased

Question 3

What’s a contraction

Answer 3

When price goes up and demand lowers

Question 4

What’s an expansion

Answer 4

Lower price demand goes up

Question 5

What causes shift in demand curve

Answer 5

Population advertising income change in price of complimentary goods trends change in price of substitute good

Question 6

If price increases what happens to supply

Answer 6

Goes up as business willing to provide more if they are benefiting more from each product

Question 7

What causes shift in supply curve

Answer 7

Cost of production (wages/raw materials)
Government taxes and subsidies
Technology
Natural factors eg weather

Question 8

Price below equilibrium

Answer 8

Here will be a shortage line across from price and down from supply and demand and that space is a shortage

Question 9

Evaluation

Answer 9

Magnitude
Time
Confidence

Question 10

Derived demand

Answer 10

Demand that is a cause of another demand E.g demand for builders increased because demand for houses increased