T2 Mapping Participant Preferences

Question 1

What is the exchange environment

Answer 1

Find this one out

Question 2

What is the definition of a market

Answer 2

A market is defined as the Institute that processes information so that exchange can take place between at least two parties

Question 3

What is demand

Answer 3

Demand represents the choice making preferences of consumers

Question 4

What is quantity demanded defined as

Answer 4

The amount the consumers are willing and able to buy at a given price

Question 5

When do changes in quantity demanded occur

Answer 5

When there is a change in price.

And involves of movement between points on the demand curve

Question 6

When do changes in demand occur

Answer 6

changes in demand is an increase or decrease in demand for a product regardless of price

Question 7

What are the factors that lead to a change in demand

Answer 7

Number of buyers.
Tastes and preferences.
Income.
Buyer expectations.
Prices of related goods

Question 8

How does the demand curve change if there is an increase or decrease in demand

Answer 8

If demand increases the demand curve shifts to the left if demand increases the demand curve shifts to the right

Question 9

What is supply

Answer 9

Supply represents availability of goods to the market from producers

Question 10

What is quantity supplied defined as

Answer 10

Where to find the quantity supplied of any good or service as the amount the producers are willing and able to sell at a given price

Question 11

What is the law of supply

Answer 11

The law of supply is the direct relationship between the price of the good and the quantity supplied.

The law of supply is that as a price rises produces will get more benefit so they will supply a greater quantity of goods to the market

Question 12

How do we do we define changes in quantity supplied

Answer 12

Changes in quantity supplied result due to a change in price and involve movement between the points on the supply curve

Question 13

How do we define a change in supply

Answer 13

A change in supply is it increase or decrease in supply of a product regardless of price.

Question 14

What are the factors that can lead to a change in supply

Answer 14

Prices of factors of production.
Prices of other goods the firm to produce.
Expected future prices.
Technology.
Number of suppliers.

Question 15

How does the supply curve change if there is a decrease or increase in the change of supply

Answer 15

It’s apply decreases the supply curve shift to the left if supply increases the supply curve shift to the right

Question 16

What is price elasticity

Answer 16

The degree of responsiveness by consumers to a change in price is known as the price elasticity of demand

Question 17

What happens to the demand curve when there is a low elasticity of demand

Answer 17

When the price changes by a lot there is little change in quantity demanded.
The downward slope is a sharp decline or incline. Which demonstrates a dramatic change in price but a low change in quantity demanded

Question 18

What happens to the demand curve when there is a high elasticity of demand

Answer 18

With a small change in price there is a large change in quantity demanded.
We can see have a quantity demanded has stretched like a rubber band.
The graph looks slow and gradual which represents a major change in quantity and a minor change in price.