Questions and Answers
What happens to the quantity of a product when supply decreases?
The quantity decreases
What happens to the price of a product when demand increases?
The price increases
Which of the following describes the concept of demand and supply?
The relationship between the quantity of a product consumers are willing to buy and the price of that product
Which of the following is NOT a type of market?
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What is the main characteristic of a monopoly market?
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In an oligopoly market, how many sellers are there?
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Study Notes
Effects of Supply and Demand Changes
- When supply decreases, the quantity of a product decreases.
- When demand increases, the price of a product increases.
Understanding Demand and Supply
- Demand and supply is a concept that describes the relationship between the quantity of a product that consumers are willing to buy and the quantity that producers are willing to supply.
Types of Markets
- Oligopoly is a type of market where there are only a few sellers.
- Monopoly is a type of market where there is only one seller.
- Perfect competition, monopoly, oligopoly, and monopsony are all types of markets.
- A bilateral monopoly is NOT a type of market, where there is only one buyer and one seller.
Characteristics of Markets
- The main characteristic of a monopoly market is that there is only one seller.
- In an oligopoly market, there are only a few sellers.
