Supply And Demand Flashcards
1
Q
What is demand?
A
Demand measures the level of interest customers have in buying a product
2
Q
What is supply?
A
Supply is the quantity of a product that producers are able to deliver within a specific time period
3
Q
What are the main factors affecting demand?
A
- Price
- Prices of other goods
- Changes in consumer incomes
- Fashion, tastes and preferences
- Advertising and branding
- Demographics
- External shocks
- Seasonal factors
4
Q
What are the main factors leading to a change in supply?
A
- Changes in costs of production
- Introduction of new technology
- Indirect taxes
- Government subsidies
- External shocks
5
Q
What is a supply curve?
A
Shows how supply increases when customers are willing to pay more for the product
6
Q
What is equilibrium?
A
The point where there is a balance between supply and demand
