Factors affecting demand and supply

A consumer's level of disposable income is...

• A factor affecting demand

• A factor affecting supply

A consumer's level of disposable income refers to:

• All of the amount of money a consumer has

• The amount of money someone has to spend after paying their bills (their economic needs)

• The money consumers spend on taxes or save into banks

• Their tax bracket income - the more income the more tax they pay

As a consumer, if your level of disposable income increases this will have the effect of:

• Increasing your supply

• Decreasing your supply

• Increasing your demand

• decreasing your demand

A change in the weather day to day or the change of seasons can affect a change in:

• Producer Supply

• Consumer Demand

During winter in Perth the weather forecast predicts a week of below 0° temperatures. What effect will this have on the market for hot chocolate?

• It will cause a DECREASE in the quantity supplied for hot chocolate

• It will cause an INCREASE in the quantity supplied for hot chocolate

• It will cause a DECREASE for the quantity demanded for hot chocolate

• It will cause an INCREASE in the quantity demanded for hot chocolate

During winter in Perth the weather forecast predicts a week of below 0° temperatures so consumers rush out to buy hot chocolate. What factor affecting demand or supply is this?

• Supply factor - Natural Disasters

• Demand factor - weather or seasonal factors

• Supply factor - cost of resources

• Demand factor - tastes and preferences

People live in Bayswater live on a floodplain that can get quite muddy when it rains. Many people in Baywater choose to purchase Wellington boots in winter when there is heavy rain so their feet don't get muddy. During summer when it is dry, what effect will this have on the sale of Wellington Boots for the consumers of Bayswater?

• Quantity demanded for Wellies will increase

• Quantity demanded for Wellies will decrease

• Quantity supplied for Wellies will increase

• Quantity supplied for Wellies will decrease

People live in Bayswater live on a floodplain that can get quite muddy when it rains. Many people in Baywater choose to purchase Wellington boots in winter when there is heavy rain so their feet don't get muddy. Does this scenario reflect a factor affecting demand or supply?

• Demand

• Supply

Consumer Jennifer is lactose intolerant but likes to have a well-balanced diet and a daily cappuccino. During her weekly supermarket grocery shop, her demand for what kinds of goods will decrease?

• Non-dairy milk alternatives like almond milk

• Healthy staples like rice and pasta

• Goods that have dairy in them like milk, cheese and butter

• Fresh fruit and vegetables

Consumer Jennifer is lactose intolerant and prefers to purchase groceries in her weekly supermarket shop that are healthy and nutritious, as opposed to high in sugar or fat products. Does this reflect a factor reflecting demand or supply?

• Demand

• Supply