Identifying a business oppertunity

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What is a market?
Any medium where buyers and sellers interact and agree to trade at a price.
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What are buyers?
People or businesses that want to purchase something. They create demand for goods or services.
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What is a seller?
People or businesses who want to sell something. They create supply of goods or services.
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What is demand?
The amount of a good or service that people are willing and able to buy at a given price at a given time.
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What is market demand?
The sum of all individual demands for a particular good or service.
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What is the relationship between price and quantity?
When price increase quantity decreases. Or when price decreases quantity increases.
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What happens when there is a change in price?
A movemet along the demand curve.
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What does a shift in the demand curve indicate?
It is caused by a factor other than price.
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What causes the demand curve to shift?
Changes in income, change in population, advertising, changes in the price of other goods.
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What is a normal good?
As income rises so to does the quantity demanded and as income drops so to does quantity demanded.
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What is an inferior good?
When income increases quantity demanded decreases and as income decreases quantity demanded increases.
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What is a substitute?
Goods that can be consumed in place of another.
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What is a complement good?
Goods that are normally used together.
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What is supply?
The amount of a good or service that producers are willing and able to supply at a given price and time.
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What is market supply?
Refers to the sum of all individual suppliers of a particular good or service.
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What happens to the quantity supplied when prices increase?
Quantity increases
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What happens to quantity supplied when prices decrease?
Quantity decreases
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How does a change in price affect the supply curve?
It causes a movement along the supply curve.
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How does a change in a factor other than price affect the supply curve?
The suplply curve will shift.
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What factors could cause the supply curve to shift?
Change in costs, change in the size of the industry, imposition of tax, natural phenomena, new technology.
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What is market orientation?
It is achieved when businesses focus on their activities, products and services around the needs of the customer. The business adapts to give consumers what they want.
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What are the benfits of market orientation?
More likerly to produce a prduct that consumer will want, creates a competitive advantage, bbrand loyalty may be created, staisfied customers are more likely to recommend a business, increasing brand loyalty makes it easier to charge higher prices.
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Other cards in this set

Card 2

Front

What are buyers?

Back

People or businesses that want to purchase something. They create demand for goods or services.

Card 3

Front

What is a seller?

Back

Preview of the front of card 3

Card 4

Front

What is demand?

Back

Preview of the front of card 4

Card 5

Front

What is market demand?

Back

Preview of the front of card 5
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