supply and demand

Question 1

what happens to prices when supply exceeds demands

Answer 1

prices fall

Question 2

what happens to prices when demand exceeds supply

Answer 2

prices rise

Question 3

what is demand affected by (3)

Answer 3

• income
• prices
• preferences

Question 4

what happens to supply if the price of a good increases

Answer 4

supply increases (people stop buying, more leftover)

Question 5

what happens to demand if price of a supply decreases

Answer 5

demand increases

Question 6

what is supply affected by (2)

Answer 6

new tech, climate events, etc.

Question 7

how are market prices determined

Answer 7

an equilibrium is reached

Question 8

what’s an equilibrium

Answer 8

when the supply of good matches the demand

Question 9

which type of market doesn’t involve government intervention

Answer 9

free market (prices are based of negotiation, trade)

Question 10

what can cause a change in supply

Answer 10

number of seller (if theres only 1 McDonald’s in a town, there will be less supply bc everyone goes there vs if there’s 10 McDonald’s in a town, more supply)