Economics Revision Unit 6

Whar is a market?

A market is where buyers and sellers meet to exchange ggod and services against a payment

What is demand?

Effective demand is the willingness and ability to buy a commodity at a given price and over given period of time

What is the law of demand?

The law of demand state that more is bought at a lower price that at a higher price, and vice versa

What is demand schedule?

A demand schedule is a table that shows the quantity demanded of commodities at given prices

What is a demand curve?

A demand curve is a diagram that shows the quantity demanded of a commodity at each price.

Give the factors affecting demand

• Price of the product itself

• Income of customers

• Population

• Climate

• Tastes and preferences

What is supply

Supply is the quantity of a commodity offered for sale by sellers on the market at a given price and time.

What is the law of supply?

The law of supply states that a rise in the price of a commodity will raise the quantity supplied.

What is a supply schedules?

A supply schedule is a table that shows the quantity supplied of a commodity at each price

What is a supply curve?

A supply curve is a diagram that shows the quantity supplied at each price

Give the five factors affecting the supply

• Price of the prouct itself

• Cost of production

• Technology

• Climate

• Taxes

What is the equilibrium point?

The equilibrium point is where the demand curve and the supply curve meet each other.