1.2.3 Markets_2

• What is the definition of demand?


  Quantity consumers are willing to buy at a price
• What is the definition of supply?


  Quantity producers are willing to produce at a price
• What is the definition of equilibrium?


  The price where quantity demanded equals quantity supplied
• How can market segmentation be useful for a business?


  • Tailors marketing efforts to specific needs
  • Improves targeting and personalization
  • Increases conversion rates
  • Refines product development for better fit
• What is an example of primary market research?

  Surveys, interviews, or focus groups
• What is an example of secondary market research?

  Analyzing existing reports or statistics
• What happens when a new technology reduces the cost of producing electric cars?

  • Supply curve shifts rightwards
  • Prices decrease
  • Quantity increases
• What occurs when a celebrity endorses a new skincare product?

  • Demand curve shifts rightwards
  • Prices increase
  • Quantity increases
• What happens when there’s a shortage of raw materials for smartphones?

  • Supply curve shifts leftwards
  • Prices increase
  • Quantity decreases
• What is the effect of a government tax on sugary drinks?

  • Supply curve shifts leftwards
  • Prices increase
  • Quantity decreases
• What characterizes a static market?

  • Stable supply and demand conditions
  • Slow price adjustments
  • Less exposure to external shocks
• What characterizes a dynamic market?

  • Frequent changes in supply and demand
  • Driven by technological innovations
  • Influenced by consumer preferences
• What should you do for each supply and demand scenario?

  • Draw the appropriate shift in the curve
  • Label new equilibrium price and quantity
  • Identify surplus or shortage
  • Explain the cause of the shift
• What happens when a severe drought hits a wheat-producing country?

  • Supply curve shifts left
  • Price increases
  • Quantity decreases
  • Initial shortage occurs
• What is the impact of health concerns on red meat demand?

  • Demand curve shifts left
  • Price decreases
  • Quantity decreases
  • Initial surplus occurs
• How does the popularity of electric scooters affect their demand?

  • Demand curve shifts right
  • Price increases
  • Quantity increases
  • Initial shortage occurs
• What effect do subsidies for solar panel manufacturers have?

  • Supply curve shifts right
  • Price decreases
  • Quantity increases
  • Initial surplus may occur
• Why do shortages and surpluses occur?

  Due to imbalances in supply and demand