Demand & Supply

8 important questions on Demand & Supply

What does the term "Supply" reflect?

- Decision on what items to produce, given technology

What is included in a "Supply List" in a supply schedule?

- Quantities supplied at different prices, with constant influencing factors

What is the "Minimum Supply-Price"?

- The lowest price a seller is willing to sell for, based on marginal cost
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What is the "Equilibrium Quantity"?

- Quantity bought and sold at equilibrium price, where plans match

How does price act as a regulator in the market?

- Regulates buying and selling plans by balancing supply and demand

What do producers do when there is too much of what they offer?

- Reduce their prices to adjust to the excess supply.

What do buyers and sellers find during periods of price adjustments?

- The best deals are available for both buyers and sellers.

When do demand and supply changes happen in the opposite direction?

- When one increases, the other decreases.

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