State what is meant by demand and supply in market mechanism!

The market mechanism is that every transaction of demand and supply is determined by the
price and quantity of goods. The equilibrium point will occur in the market mechanism if the
price of goods demanded is equal to the price of goods supplied or the quantity of goods
demanded is equal to the number of goods supplied

Define the reason for a movement up and down along a demand curve!
Well the reason is that if price rises the quantity of demand decreases and if price decreases
than the quantity demanded increases, the logic is that people want to buy cheaper products
therefore the quantity of the product sold would increase.

Explain the factors that affect the demand for goods and services that cause shifting in demand
curve!
-Change in consumers' income.
-Prices of related goods.
-Consumers' taste and preferences.
-Consumers' expectations for the future.
-Changes in population (generational, migration, etc.)

Define the reason for a movement up and down along a supply curve!
A rise or fall in the price of the commodity alone causes a movement along the supply curve
(ceteris paribus).

5. Explain the factors that affect the supply of goods and services that cause shifting in
supply curve!
Factors that can shift the supply curve for goods and services, causing a different quantity to be
supplied at any given price, include input prices, natural conditions, changes in technology, and
government taxes, regulations, or subsidies.