Supply And Demand

Question 1

What is economics

Answer 1

Economics is a social science that examines how people use limited resources to make decision to satisfy their needs and wants

Question 2

What is scarcity

Answer 2

Scarcity implies that there are not enough resources to satisfy all the desires and requirements of people. E.g Taylor swift and Coldplay tickets

Question 3

What is a market economy

Answer 3

A market economy is an economic system where decisions about production and distribution are driven by the interactions of individuals and businesses in the market place

Question 4

Role of consumers in the economy?

Answer 4

1. Determine what goods and services are produced
2. Provide information about habits, trends and preferences
3. Pay for economic goods that they demand

Question 5

What is demand

Answer 5

Demand is the quantity of a product that consumers are willing to purchase at a given price

Question 6

What is the law of demand

Answer 6

The law of demand states that when the price of a product increases, the quantity demanded decreases, and vice versa.

Question 7

What is individual demand

Answer 7

The quantity of a good or derive that an individual consumer is willing and able to purchase at various prices

Question 8

What is market demand

Answer 8

The total quantity of a good or service that all consumers in a market are willing and able to buy at various prices

Question 9

Factors affecting demand

Answer 9

Changes in income (more income), preferences, price of related goods, consumer expectations (how product is advertised), seasonal demand

Question 10

What is supply

Answer 10

Supply refers to the quantity of a product that producers are willing to sell at a given price

Question 11

What is the law of supply

Answer 11

The law of supply states that an increase in price will lead to an increase in quantity supplied and vice versa