Understanding Supply and Demand

What happens to the price of a product when the demand increases but the supply remains the same?

• The price decreases

• The price increases

• The price stays the same

• The price becomes unpredictable

Which of the following is a factor that can influence consumer behaviour?

• Weather conditions

• Personal preferences

• The colour of the product

• The time of day

What is the role of a retailer in the supply chain?

• To produce goods

• To transport goods

• To sell goods to consumers

• To store raw materials

If the supply of a product increases while the demand remains constant, what is likely to happen to the price?

• The price increases

• The price decreases

• The price stays the same

• The price becomes unpredictable

Which of the following is a responsibility of trade stakeholders?

• Ignoring consumer feedback

• Ensuring product safety

• Reducing product quality

• Increasing product prices without reason

What is one way consumers can influence the market?

• By refusing to buy certain products

• By producing their own goods

• By setting the prices of products

• By controlling the supply of goods

Which of the following is NOT a factor that influences consumer choices?

• Advertising

• Peer pressure

• The phase of the moon

• Cultural trends

What is the main responsibility of a manufacturer in the trade process?

• To sell products directly to consumers

• To create and produce goods

• To transport goods to retailers

• To advertise products

How can a change in consumer income affect demand?

• It has no effect on demand

• Higher income can increase demand

• Lower income can increase demand

• It only affects supply, not demand

What is one way that trade stakeholders can ensure fair trade practices?

• By ignoring international trade laws

• By setting unfair prices

• By following ethical guidelines

• By reducing product quality