Supply & Demand Edexcel Unit 1 Business Studies
- Created by: ellaalevel
- Created on: 08-01-19 19:40
View mindmap
- Supply & Demand
- Supply is measured in terms of the quantity of a good or service that a producer is willing and able to make available on the market, at a given price, over a given time.
- Factors leading to a change in Supply
- A change in the production process.
- Due to a rise in raw materials.
- Rise in the Minimum Wage
- Rise in overheads.
- Rise in rent or mortgage.
- The amount supplied will decrease as less profit will be made
- Introduction of new technology
- New technology used in production process
- New technology normally more efficient and will help lower costs.
- New technology used in production process
- A change in the production process.
- The amount supplied will decrease as less profit will be made
- Factors leading to a change in Supply
- Demand is the amount of a good that consumers are willing and able to pay at a given price.
- Law of Demand
- When price goes up, demand goes down.
- Factors affecting demand.
- Price of Substitutes
- If the price of a good falls, the quantity demanded of the substitute rises.
- If a good has a lot of close substitutes then the prices of these will affect demand significantly.
- Changes in consumer incomes.
- Changes in fashions, tastes and preferences.
- Advertising and Branding
- Demographics
- Price of Substitutes
- Price of Complements
- e.g if you buy cereal you will buy milk to.
- Price of a good will be affected my its complement.
- e.g if you buy cereal you will buy milk to.
- Law of Demand
- PED, Price Elasticity of Demand
- Untitled
- Supply is measured in terms of the quantity of a good or service that a producer is willing and able to make available on the market, at a given price, over a given time.
Similar Business Studies resources:
Teacher recommended
Teacher recommended
Comments
No comments have yet been made