The market

This includes discriptions about the market and how they are affected by supply and demand. I apologise that it couldn't be in revision card form but the diagrams that were necessary for this unit couldn't be put in. Hope this helps anyway (also most of the diagrams were done in paint so they may look a bit messy)

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The market place

A marketplace is where buyers meet sellers. The key elements within every market are its
size (how much is spent by customers in a year), the extent to which it can be subdivided (e.g.
confectionary market into chocolate, sugar based sweets, chewing gum), and the extent to…

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They produce a long tail of competitive, profitable small businesses, able to carve their
own little niche in markets this is very difficult to achieve in the high street, where rents
are so high that only big firms can afford them

Demand

Demand is the desire of consumers to buy…

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Incomes

The British economy grows at 2.5% a year. This means that average income levels double
every 30 years. Economic growth means we all get richer over time

The demand for most products and services grow as the economy grows. Goods like
cars and cinema tickets are normal goods, for…

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Usually firms will be willing to supply more as the price increase. This is because they make
more profit on each unit sold. The relationship is usually shown in the supply curve


The supply curve shows
how the quantity supplied responds
to a change in the price of the good…

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Apologise

The equilibrium price is the point on the supply and demand curve where the demand=supply.

Equilibrium point will
be when supply is equal to
the price (P1)
If a price us set
below the equilibrium then
less will be supplied and
demand will rise. This will
lead to excess…

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