component 1-09. markets demand and supply

What is demand?

Quantity of a product that consumers are willing and able to purchase at any given price over a given period of time

What is the demand curve?

The relationship between demand for a good or service and its price can be illustrated using the demand curve. The demand curve tells us that the higher price of a good service the lower the quantity demand and the lower the price the higher the quantity of demand.

What is supply?

The quantity of a product that suppliers are prepared to supply to the market at any given price over a given period of time.

What is the supply curve?

The relationship between the supply of a God of service and its price can be illustrated using the supply curve. The supply curve illustrates that the higher the price the higher quantity supplied on the lower the price the lower quantity supplied.

What is this called?

The market mechanism

What factors affect demand?

advertisement, Weather, season, trends, advice from others, income, price of other goods, changes in fashion, changes in population, legislation.

If there is an increase in demand and a decrease in demand, which way will the demand curve shift to?

If there is an increase in demand, the curve will shift to the right and if there is a decrease in demand, the curve will shift to the left

What factors affect supply?

Weather, scarcity, transportation, seasons, extreme weathers, employees, global events, laws, technology

What is the structure when describing what happens in a demand and supply question?

Sentence 1-describe exactly what happened using appropriate business terminology

Sentence 2-describe what has happened to the demand/supply curve using terms D1 to D2/S1 to S2

Sentence 3-a new market equilibrium is established by D cuts S2

Sentence 4-quantity supplied/demand increases/decreases (Q1 to Q2)

Sentence 5-price increases/decreases (P1 to P2)