Economics Assessment 3

Market

A market is a place or situation where buyers and sellers of goods or services come together in exchange, namely to exchange a good or a service

Demand

The demand for a good or service represents the willingness and ability of buyers or consumers to purchase goods and services.

Supply

The supply of a good or service represents the willingness or ability of suppliers or producers to produce or sell goods and services.

Law of Demand

As the price of a product increases, the total quantity demanded decreases and as the price decreases the total quantity demanded increases.

Law of Supply

As the price of a product increases, the total quantity supplied increases and as the price decreases the quantity demanded decreases

Non-Price Demand Factors

Non price demand factors that influence the behaviour of consumers and households that are not related to the price of goods and services

Non Price Supply Factors

Non price supply factors refer to facts that influence the behaviour of suppliers/producers/businesses that are not related to the price of goods and services.

Material Living Standards

Refers to one’s ability to access good and services, affected by one’s income and national production levels.

Non-Material Living Standards

Refers to the wide range of facts that influence our wellbeing beyond our ability to access goods and services and impacts our ‘quality of life’.

Equilibrium

Equilibrium in economics is the state where market forces are balanced, occurring when the quantity demanded by consumers equals the quantity supplied by producers at a specific price