supply and demand

Question 1

what is demand

Answer 1

quantity of a product that consumers want and are able to buy at a given price at a particular time

Question 2

what is supply

Answer 2

quanity of a product tat suppliers are willing and able to supply to a market at a given time

Question 3

factors affecting demand

Answer 3

Substtues-e.g cost of margairne increases, so demand for butter rises
Adverting and branding-more they adversitse, more loyal conusmere become, stops demand from falliing
Demographics-changes in population can increase demand e.g better healthcare, older genertaions need more goods and services
Fashion tastes, consumer preferenecs-demand changes basd on what consumers want e.g increase in concern for health, demand will fall for sugary drinks, increase for healthy drinks
A
Consumer incomes-higher the incomes, demand will rise for expensive product’
income falls, demand for cheaper producst will rise
External sohockse.g war, exterme weather
e.g said to start flooding, incresae in demand for sandbags
STudy tip:sad face

Question 4

factors affectin supply

Answer 4

Costs of producton-cost of prodcuion increases, profit made from selling product decreases, fall in supply
Indirect taxes-increase on tax, increase costs for producer, fall in supply
Subsidies-moeny given from governemnt to business to help them,increase supply
New technology-creating more efficient productivity, can reduce their prices, increase in supply
External shocks-if country at war, country will focus more on buying things which help rather then clothes etc so supply would fall
D
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