Demand and Supply

What is demand ?

• The willingness and ability to purchase a good backed by the ability to pay for it

• The ability to purchase a good or service

• Your desire to own a BMW

• The willingness of a customer to purchase a good or service

A market is?

• A place to find various goods and services

• Where buyers go to showcase their goods

• Where buyers and sellers come together to exchange goods and services

Changes in income represents a.........

• Determinant of supply

• Determinant of Demand

• Market Force

• will change prices

Supply is only the provision of a good or service a particular price at a particular time

• True

• False

an assumption by economists to mean all other factors remain constant

• Market holds constant

• Break even

• Ceteris Paribus

• Carpe noctem

Price of the good, Population, Tastes and preferences and rates of interest are?

• Determinants of Demand

• Determinants of Supply

The demand curve will shift to the left (decrease in demand)

• Advertising decreases

• When price of the good decreases

• Number of sellers changes

• The price of production decreases

Effective Demand is the desire for a good or service backed by the ability to pay

• False

• True

A change in price levels will result in

• A new demand curve

• A movement along the Demand curve

• A shift or the entire demand curve

• A new supply curve

The supply curve shows

• The amount that sellers are willing and able to offer

• a list of price and quantity supplied combinations

• The amount consumers will buy from what is supplied

• The amount sellers are willing and able to supply at all possible prices