Year 10 Demand Topic

Define supply and demand in economics.

• Supply is the quantity of a good or service that consumers are willing to buy at a given price, and demand is the quantity of a good or service that producers are willing to sell at a given price.

• Supply is the quantity of a good or service that producers are willing to sell at a given price, and demand is the quantity of a good or service that producers are willing to buy at a given price.

• Supply is the quantity of a good or service that producers are willing to sell at a given price, and demand is the quantity of a good or service that consumers are willing to buy at a given price.

• Supply is the quantity of a good or service that consumers are willing to sell at a given price, and demand is the quantity of a good or service that consumers are willing to buy at a given price.

Explain the law of demand and provide an example.

• The law of demand states that as the price of a cup of coffee increases, the quantity demanded will also increase

• An increase in the price of a cup of coffee will lead to a decrease in the quantity demanded

• If the price of a cup of coffee decreases, fewer people will be willing to buy coffee

• For example, if the price of a cup of coffee decreases, more people will be willing to buy coffee, leading to an increase in the quantity demanded.

What factors can cause a shift in the demand curve?

• Global economic trends

• Changes in consumer income, prices of related goods, consumer preferences, population demographics, and consumer expectations.

• Weather conditions

• Changes in government regulations

Describe the concept of equilibrium price.

• Equilibrium price is the price at which there is no demand or supply.

• Equilibrium price is the price at which the quantity demanded exceeds the quantity supplied.

• Equilibrium price is the price at which the quantity demanded by consumers equals the quantity supplied by producers.

• Equilibrium price is the price at which the quantity supplied exceeds the quantity demanded.

Differentiate between a change in quantity demanded and a change in demand.

• Quantity demanded changes with price, demand changes due to factors other than price.

• Quantity demanded changes due to factors other than price, demand changes due to price.

• Quantity demanded changes with price, demand changes with price.

• Quantity demanded changes due to factors other than price, demand changes with price.

How does a surplus in the market affect prices?

• Surplus in the market leads to lower prices.

• Surplus in the market leads to higher prices.

• Surplus in the market has no impact on prices.

• Surplus in the market leads to unstable prices.

Discuss the concept of price elasticity of demand.

• Price elasticity of demand measures the supply of a product or service.

• Price elasticity of demand is only applicable to luxury goods.

• Price elasticity of demand is constant across all markets.

• Price elasticity of demand is a concept that quantifies the impact of price changes on the demand for a product or service.

What is the relationship between price and quantity supplied?

• Neutral

• Inverse

• Negative

• Positive

Explain the impact of government intervention on supply and demand.

• Government intervention has no impact on supply and demand

• Government intervention always leads to equilibrium in supply and demand

• Government intervention only affects demand, not supply

• Government intervention can impact supply and demand by implementing policies such as taxes, subsidies, price controls, and regulations. These interventions can shift the supply and demand curves, leading to changes in equilibrium price and quantity.

Provide an example of a real-world scenario where supply and demand interact.

• Real estate market

• Technology market

• Labor market

• Agricultural market