Supply and Demand

Question 1

What is Demand

Answer 1

The amount of a good/service that customers are willing and able to buy at any given point

Question 2

What is supply

Answer 2

The amount of a good/service that customers are willing and able to sell at any given point

Question 3

Equilibrium price

Answer 3

The situation in a market where demand is equal to supply, in theory customers can buy what they want and shops have no unsold stock

Question 4

What are the supply factors

Answer 4

Tax
Subsides( a sum of money granted by the state or a public body to help an industry keep the service low)
price of other products(competitive supply)

Question 5

Price elasticity

Answer 5

price elasticity of demand shows how responsive demand is to a change in price

Question 6

Elastic demand

Answer 6

Quantity demanded is sensitive to a change in price

Question 7

Inelastic demand

Answer 7

Quantity demanded is insensitive to a change in price