Market Conditions Amd Flashcards
1
Q
What are market conditions
A
Refers to number of features of a market such as the level of sales the rate which they are changing and the number/strength of competitors
2
Q
What is demand
A
Amount of a particular good or service rhat consumers or organisations want and can afford to buy, shows the level of demand a business can expect
3
Q
what does demand rising cause
A
- increase sales
- Increase prices
- total revenue
4
Q
What does demand falling cause
A
- decrease in sales
- decrease in prices
- decrease in total revenue
5
Q
What does competition decreasing cause
A
- few rivals and potential rivals
- smaller business with little power
6
Q
What does competition increasing cause
A
- big and powerful businesses In power
- large number of rivals and potential rivals
7
Q
Factors affecting market conditions
A
- more volatile market, changes in demand and supply
- business can merge
- consumers may become more powerful
- competitors may introduce new products
