CFA Level 1: Economics

CFA Level 1: Economics Product Markets (Goods Markets) answersMarkets for goods and services to consumers Factor Markets answersMarkets for factors of production (raw material, goods and services used in production) Intermediate Goods answersGood and services used in the production of final goods and services. Demand Function answersProvides the quantity demanded as a function of price of the good or service, the prices of related goods or services, and some measure of income. Supply Function answersProvides the quantity supplied as a function of price of the good or service and the prices of productive inputs, and depends on the technology used to produce the good or service. Change in Price answersThe change in quantity demanded (supplied) in response to this represents a movement along a demand (supply) curve, not a change in demand (supply). Shifts in Demand Curve answersDemand is affected by changes in consumer tastes and typically increases (shifts to the right) with increases in income, increases in the price of substitute goods, or decreases in the price of complementary goods. Shifts in Supply Curve answersSupply is increases (shifted to the right) by advances in production