Homework - Supply and Demand and Market Types

What is supply?

• The amount of a product that consumers are willing to purchase at a given price

• The amount of a product that a producer is willing to sell at a given price

• The price point at which supply and demand meet

• The reward for suppliers when the price of a product increases

What is demand?

• The amount of a product that consumers are willing to purchase at a given price

• The amount of a product that a producer is willing to sell at a given price

• The price point at which supply and demand meet

• The reward for suppliers when the price of a product increases

According to the law of supply, what happens as price increases?

• Demand falls

• More suppliers want to produce and supply more of the product

• The price equilibrium is reached

• Consumers are willing to purchase more of the product

According to the law of demand, what happens as the price of goods increases?

• Demand falls

• More suppliers want to produce and supply more of the product

• The price equilibrium is reached

• Consumers are willing to purchase more of the product

What is price equilibrium?

• The amount of a product that consumers are willing to purchase at a given price

• The amount of a product that a producer is willing to sell at a given price

• The price point at which supply and demand meet

• The reward for suppliers when the price of a product increases

​ (a)   markets are when a business concentrates its ​ (b)   efforts and resources on serving ​ (c)   segment of the market e.g. vegan chocolate.

• Niche
• one
• entire
• mass
• ideas
• lots of

​ (a)   markets have a ​ (b)   value of ​ (c)   by volume e.g. chocolate.​

• Mass
• large
• sales
• niche
• small
• profit

Organise these options into the right categories

Groups:

(a) Niche Market

,

(b) Mass Market

• • small number of competitors

• • mass advertising campaigns

• • low sales volume

• • aimed at a large percentage of the market

• • high sales volume

• • large number of competitors

• • unique product features

• • aimed at a small section of the market

• • wide distribution channels

• • non-specialised products

• • targeted marketing campaigns

• • limited distribution channels

• • competitive pricing

• • high profit margins

• • specialised products

• • new product launches