Factors Affecting Demand And Supply - SS2 Economics Past Questions and Answers - page 1
What is one factor that can affect demand for a good or service?
The cost of production
Government regulations
Availability of substitute goods
What is one factor that can affect the supply of a good or service?
Consumer tastes and preferences
Technology and innovation
Advertising and marketing efforts
How does an increase in consumer income affect demand?
It increases demand
It decreases demand
It has no effect on demand
How does an increase in the cost of production affect supply?
It increases supply
It decreases supply
It has no effect on supply
What is one factor that can affect both demand and supply?
Consumer income
Government regulations
Availability of raw materials
How do technology and innovation affect supply?
Technology and innovation can decrease the cost of production, increase efficiency, and increase supply.
How do population size and demographics affect demand?
Population size and demographics can influence the size and composition of the consumer market, and hence the level of demand for a good or service.