Theme 1 - 1.2

Question 1

What is demand?

Answer 1

Demand is the amount of a product that consumers are willing and able to buy at a given price.

Question 2

What are the factors affecting demand?

Answer 2

Price
External shock
Demographics
Advertising
Substitutes
Consumer trends

Question 3

What is supply?

Answer 3

Supply is that amount of a product that suppliers will offer to the market at a given price.

Question 4

What are the factors affecting supply?

Answer 4

Technology
Taxes
Cost of production
External shocks
Government subsidies

Question 5

What is elasticity?

Answer 5

Elasticity is the measure the responsive of demand from a change in a relevant variable e.g price or income.

Question 6

What are the factors influencing YED?

Answer 6

Good necessity or indulgence
Sales forecasting
Financial planning
Studying income demographics

Question 7

What is PED?

Answer 7

PED is the responsiveness of quantity demanded to a change in price.

Question 8

What is YED?

Answer 8

YED is the responsiveness of demanded to a change in income.