supply & demand

Question 1

what is demand

Answer 1

Demand is the quantity of a good/service that consumers are willing and able to buy at a particular price.
Everyone has different demands/tastes, so stores have variety.

Question 2

what’s the law of demand

Answer 2

as the price of a good increases, quantity demanded decreases

Question 3

what are the conditions that create demand

Answer 3

Conditions that Create Demand:
Customers must be aware of the product
Businesses must have ample supply (enough product)
Businesses have to establish prices that are reasonable and competitive
Business must have a convenient location

Question 4

what is supply

Answer 4

Supply is the quantity of a good/service that businesses are willing and able to provide within a range of prices that people are willing and able to pay. (The stuff available to buy).

Question 5

what is the law of supply

Answer 5

as the price of a good or service increases, the quantity of goods or services that suppliers offer will increase, and vice versa.

Question 6

conditions that affect supply

Answer 6

Conditions that affect supply:
Change in the number of producers. Businesses that are profitable should expect competition.
Change in technology. Computer tech has made it much easier to produce more, faster and cheaper.
Change in production.

Question 7

what’s a surplus

Answer 7

Surplus: Supply>Demand

Question 8

what’s a shortage

Answer 8

Shortage: Demand>Supply

Question 9

what’s an equlibrium

Answer 9

Equilibrium:

Demand=Supply

Question 10

4 Factors that increase/decrease demand:

Answer 10

Change in income
Change in taste
Change in expectations of future conditions
Change in population