Supply and Demand

Question 1

Supply Factors:

Answer 1

GRTSE

Question 2

What does GRTSE stand for?

Answer 2

Goods Resources Technology Sellers Expectations

Question 3

Demand Factors:

Answer 3

BIRPE

Question 4

What does BIRPE stand for?

Answer 4

Buyers Income Related Goods Preference Expectations

Question 5

What is Demand?

Answer 5

The desire, willingness and ability to purchase a particular item.

Question 6

What is the Law of Demand?

Answer 6

As the prices of a good or service increases, the quality demand will decrease.

Question 7

If price goes up..

Answer 7

Demand goes down
-Fewer can buy items
-Smaller quantity

Question 8

If price goes down…

Answer 8

Demand goes up
-More people can afford it
-Buy higher quantities

Question 9

What is the equilibrium price?

Answer 9

Where supply meets demand

Question 10

Substitute goods:

Answer 10

Increase in the price of goods
-result in the increase in demand for good

Question 11

Example of substitute good:

Answer 11

Walmart macaroni vs Velveta

Question 12

Complementary goods:

Answer 12

Increase price of good
-Reduces the demand in good

Question 13

Example of complementary good:

Answer 13

Milk with cereal