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Business A Level > Miss Blackwell Half Term 1 > Flashcards

Miss Blackwell Half Term 1 Flashcards

(59 cards)

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1
Q

Demand

A

The amount of a good or service that customers are willing and able to buy at any given price

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2
Q

Supply

A

The amount of a good or service that selleres are willing and able to sell at any given price

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3
Q

Equilibrium price

A

Situation in a market where demand is equal to supply

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4
Q

When there is excess demand in a market

A 
Price = increase
Supply = increase
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5
Q

When there is excess supply in a market

A

Price = decrease

Quantity demanded = increase

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6
Q

What are market forces

A

Supply and demand factors

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7
Q

Factors of demand

A
  • Price
  • Income
  • Wealth
  • Advertising/PR
  • Taste and fashion
  • Demographic change
  • Government action
  • Price of other products
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8
Q

Income

A

Money received from employment

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9
Q

Wealth

A

Value of a persons total assets

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10
Q

Advertising

A

Exposing

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11
Q

Taste and fashion

A

General trends

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12
Q

Demographic

A

Characteristics of a human population

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13
Q

Government action examples

A

Tax

Subsidies

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14
Q

Tax

A

An amount of money paid to the government

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15
Q

Subsidy

A

Payment from government to business to incentivise supply of a product or service

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16
Q

Substitutes

A

An alternative product serving the same purpose

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17
Q

Complement

A

A product bought in conjunction with another

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18
Q

Supply factors

A
  • Price
  • Costs
  • Taxes
  • Subsidies
  • Price of other products
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19
Q

Elasticity of demand

A

Measure how sensitive QD is to a change in price

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20
Q

Elastic

A

Demand is sensitive to a change in price (luxuries)

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21
Q

Inelastic

A

Demand is not sensitive to a change in price (necessities-petrol)

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22
Q

Competition

A

Rivalry amongst sellers

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23
Q

Market

A

Situation where buyers and sellers are in contact

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24
Q

Physical markets with advantage

Study These Flashcards
A

Shops

Provide personalisation

25
Non physical markets and advantage
E commerce | Provide convenience
26
Market price
Price range/ typical price of a product in a market at which consumers are prepared to pay
27
Mark up
Profit for one item
28
Revenue
Money made from sales
29
Competitive market
Market characterised by many sellers
30
Competitive market characteristics
Many firms Usually low prices Eg foreign exchange
31
Monopoly
Market dominated by one seller (25%)
32
Monopoly characteristics
Few firms Often high prices (although dominating firms may achieve economies of scale) Eg supermarkets
33
Oligopoly
Market dominated by a few firms Eg mobile phone operators Non price differences Similar and quite high prices (collusion)
34
Collusion
When rival companies cooperate for their mutual benefit
35
Monopolistic competition
A market structure with many competitive firms, each of whom supplies a slightly differentiated product at a similar price
36
Monopolistic competition example
Taxi businesses
37
Market size
The collective value of goods and services that buyers purchase
38
Market growth
The percentage growth of the size of the market | Measured over a specific time period
39
Market share
The percentage of total sales that a business has in a specified market
40
Ways to increase market share
- be aware of and meet customer demands - sell more (advertise) - find out why you’ve lost customers - have clear marketing plan - use variety of marketing techniques (pricing, advertising, promotion) - merge/acquire competitor
41
Barriers to entry
Factors that would prevent a firm from entering and/or competing in a market
42
Examples of barriers to entry
- Large start up costs - Need to break customer loyalties - Inability to gain economies of scale - Price war from existing businesses - Legal restriction such as patent
43
Patent
Someone can’t copy your idea/design
44
Market power
Ability of a firm to influence or control the terms and conditions on which foods are bought and sold
45
Effect of market power on barriers to entry
Barriers to entry decrease or increase as market power does | Eg monopoly would have lots of power thus a high barrier to entry
46
Barriers to exit
Factors preventing a firm from leaving a market
47
Examples of barriers to exit
- Redundancy payments - Difficulty selling off capital - Contracts with suppliers
48
Market dominance
A measure of market share compared to competitors
49
2 examples of external growth
Merger | Acquisition
50
Merger
Where 2 companies join together and form a larger business
51
Acquisition
Control of another company is achieved by buying a majority of its shares
52
Disadvantages of external growth
- Diseconomies of scale due to size (communication problems) - Redundancies - Higher prices (customers)
53
Regulating body in UK
CMA (competition markets authority)
54
What can the CMA investigate and stop
Dominance Anti-competitive practices Mergers Acquisitions
55
What other regulating body has power to stop markers and acquisitions in the UK
European regulating body
56
What the CMA does
Work to promote competition and make markets operate to benefit consumers, businesses and the economy equally
57
Responsibilities of the CMA
- Investigate mergers that may restrict competition - Conduct market investigations where anti-competitiveness may be occurring - Investigate breaches of UK or EU prohibitions against anti-competitive agreements and abuse of dominant positions
58
Sanctions the CMA can enforce
- Fine business up to 10% of turnover - Customers and competitions can sue, if anti-competitive - Individuals can be disqualified from being company director - Fine individual (director) if they fail to comply when info is requested in investigation
59
What do separate regulating bodies exist for
Former nationalised industries (gas, electricity, water, railways, telecoms)

Business A Level (16 decks)

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