jump to content of this page Bized logo linked to homepage
You are here: Home > Educators > Level 2 Business and Economics Education > The Nature of Markets > Factors Influencing Demand and Supply

Educators
Bookmark and Share

Advanced

The Nature of Markets - Factors Influencing Demand and Supply

There is a whole range of factors that influence both demand and supply. The drag and drop exercise below lists some of these factors. You have to decide whether you think the factor concerned affects demand or supply and then drag the factor to the appropriate box.

Note that if you make a mistake you will only be able to tell by the amount you have got right out of the total. You will have to decide which ones are right and which are wrong!

Please note: to make full use of the activity, your system must have Macromedia Flash Player 6 (or higher) installed - this can be obtained from the Macromedia Web site. Interactive Macromedia Flash resources developed by Biz/ed are designed to work both with and without the use of a mouse and be compatible with as many assistive technologies as possible (further information on our accessibility features is available). If you cannot view the interactive resources for whatever reason a static annotated image will appear instead, if you cannot view the static image it will be replaced by descriptive text.

To perform the drag and drop exercise using the keyboard tab to the list of items. Use l and r to move the items to the left and right containers respectively and tab to move to the next item. To mark the exercise press the return key and to reset the resource use the delete key.

No Flash plugin detected: This is a drag and drop exercise. You need to decide if the following phrases influencing demand or supply: climate, income, age, technology, price of substitutes, expectations of producers, advertising, taste, cost of production, fashion, nature, quality, size of the population, price of complements."

A substitute is a product that is similar to another product and can be used instead. For example, butter and margarine, a bus or a taxi, coffee and tea, gas and electricity and so on.

A complement is a good that tends to be used together with another related good. For example, a DVD player and a DVD, toast and marmalade, coffee and milk, pen and paper and so on.

| Index | Previous | Next |