supply and demand (markets) Flashcards
1
Q
what is meant by demand ?
A
quantity of a good or service consumers are willing to buy at a give price
2
Q
what is meant by supply?
A
quantity businesses are willing to produce at given sp
3
Q
what is meant by equilibrium?
A
where q demanded is = to q supplied
4
Q
which correlation does demand curve go ?
A
negative
5
Q
which correlation does supply curve go?
A
positive
6
Q
what will cause demand / supple to MOVE ?
A
change in price
7
Q
what will cause demand / supple to SHIFT ?
A
change in non price factors
e.g income, trends
8
Q
what does the equilibrium do ?
A
establish expected price
to see whether there is a surplus or shortage of product
