Unit 10 Economics for business LO1

A (a)   is a place where buyers and sellers meet to exchange goods and services for money.

(a)   is the amount consumers are willing and apply to buy at different prices.

(a)   is the amount businesses are willing and able to sell at different prices.

Ceteris paribus means all things being (a)   .

Which of the following is NOT a determinant of demand?

• Complements and substitutes

• Costs of production

• Consumer income

• Interest rates

Which of the following is NOT a determinant of supply?

• Weather/climate

• Improvements in productivity

• Tastes and fashions

• Government policy

PED is the responsiveness of demand to a change in (a)   .

Which of the following shows a PED that is price inelastic?

• (-)3.4

• (-)2.5

• (-)1.7

• (-)0.9

Which of the following is a factor that would indicate ELASTIC demand in relation to price?

• Luxury product

• Necessity product

• A product with a very low price in comparison to income

• A habit-forming product

The point where demand and supply meet on a market diagram is known as (a)   .