Demand
What is demand
The amount of want (and ability to get) said product
what is supply
the amount of one product
what is an affecting factor?
a factor making some sort of change.
supply and demand
is an economic term that describes the balance between product and want for the product
True or false
price affects both supply and demand
True
when prices rise what falls?
demand
higher price equals what?
higher supply
why is price an affecting factor?
Price is an affecting factor because if it's too expensive the demand would go down for it. if it's cheaper the demand would go up.
The amount a consumer is willing to pay for a product
Price
what are the 3 economic questions?
"What will be produced?", "How will products be produced?", "who will buy the products?"
True or false
Supply and demand doesn't always respond to price movement
True
The quantities supplied are more than demanded.
excess supply
2 factors affecting demand
consumer income, price of product, consumer preferences.
market price
the price in the actual market at any given time.
TRUE OR FALSE
When prices go up or down, the relative price goes up and down even when the ratio doesn't change
False
competitive demand
demand for product that have close substitutes.
too little of supply
Scarcity
3 factors affecting supply
Consumer demand, material costs, the law, natural factors, and economic conditions.
more product than what was wanted
excess supply
The ratio between two prices
relative price
Inelastic demand
A form of demand in which changes in price do not affect demand.
short term supply
a product being made for a short amount of time where the consumers must wait for more to be produced once the product runs out.
(limited time items)
how is the environment an affecting factor?
it affects what the producer sells, and what the consumer wants
(if it's hot most people don't want a heating blanket)
what is it called when there's no surplus of supply but no unmet demand
Equilibrium Price
how do businesses use relative price?
They compare different prices from different resources to see which is cheaper