Supply
What is the Definition of Supply
The willingness and ability to provide a good or service
What is the definition of Demand?
The willingness and ability to buy a good or service
Who is Adam Smith?
A Scottish Economist/Philosopher
Where the demand and supply curves meet (are equal)
The long and short-tailed Bat
According to the Law of Supply, what usually happens to the quantity supplied when the price of a product increases?
The Quantity Supplied increases, due to higher incentives for producers to make profits
According to the Law of Demand, what usually happens to the quantity demanded when the price of a product increases?
The Quantity Demanded will decrease, as goods are more expensive to purchase.
When did Adam Smith live (Rough Time Period)
1723-1790
What happens when the price in a market is higher than equilibrium?
There will be a surplus in the market
In The Lord of the Rings, what is the name of the volcano where the One Ring must be destroyed?
Mount Doom
A café sells a muffin for $4. The owner increases the price to $6, and the café decides to produce more muffins.
Is this a shift of the supply curve, or a movement along the curve?
It is a movement along the supply curve
A pair of sneakers decreases in price from $120 to $80. As a result, more people want to buy them.
Is this a movement along the demand curve or a shift of the demand curve?
This will be a movement along the demand curve.
What book did Adam Smith Write?
"The Wealth of Nations" (1776)
How does the market gets rid of a shortage?
What is the smallest country in the world by land area?
Vatican City
A dairy farmer's electricity and fertiliser costs suddenly increase.
What is likely to happen to the supply of milk, and which direction would the supply curve shift?
The supply of milk will decrease, due to increasing costs of production.
The supply curve will shift to the left.
A famous All Black starts wearing a particular brand of sneakers. Suddenly, more teenagers want to buy that brand.
What has happened to demand, and which direction would the demand curve shift, and why?
Demand for these sneakers will increase, which is a shift to the right of the demand curve.
This is because these sneakers are more "trendy" and popular.
What did Adam Smiths book introduce to the field of economics?
The concept of market forces (The invisible hand)
What happens to market price and quantity when there is an increase in demand?
Equilibrium Price and quantity will increase
Which famous music band originated from Liverpool in the 1960s?
The Beatles
A popular New Zealand ice-cream company experiences a huge increase in demand during summer. The price of its ice cream rises from $4 to $6.
What would the business do, and why?
Increase the quantity supplied of the product (moving along their supply curve). This is because there is higher profit incentives for the ice-cream business.
A new study says that eating blueberries is extremely good for your health. More New Zealand consumers now want to buy blueberries, even though the price has not changed.
What has happened to demand and why?
Demand for blueberries will increase, as it is more of a health trend to consume blueberries.
What does "market forces" actually mean in Economics?
When consumers and producers interact to get to a new equilibrium after moving away from one.
What happens to equilibrium price and quantity when there is a decrease in demand and an increase in supply?
A Decrease in price, but quantity will remain unchanged
Which country has the only national flag that is not rectangular or square?
Nepal