econ supply n demand quiz

Buyers (demand)

Individuals or entities that purchase goods or services in a market. Their willingness and ability to buy products influence price levels and market demand.

Income (demand)

The amount of money that consumers earn, which influences their ability to purchase goods and services. Higher income typically increases demand for many products.

Tastes (demand)

Preferences or desires of consumers that influence their purchasing choices.

Expectations (demand)

Refers to the beliefs or predictions consumers have about future prices and availability of a product, which can influence their current purchasing behavior.

Related goods (demand)

Goods that are either substitutes or complements to each other, affecting demand based on price changes of these goods.

Subsides and taxes (supply)

Government interventions that affect production costs, where subsidies lower costs, and taxes increase them, influencing supply levels.

Technology (supply)

The advancements in technology that improve the efficiency and effectiveness of production processes, leading to an increase in supply.

Other goods (supply)

refer to products that can either substitute for or complement each other in production, affecting supply interactions in the market.

Number of sellers (supply)

The total quantity of firms in a market that provide a particular good or service. An increase in the number of sellers typically leads to an increase in supply.

expectations (supply)

the anticipated future market conditions that can influence sellers' production and pricing decisions. If sellers expect higher prices in the future, they may decrease current supply to maximize profits later.

Resource costs (supply)

The costs associated with the production factors required to manufacture a good or service. Changes in resource costs directly impact the supply levels in the market.