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U1- Business -Ansell > Understanding Markets > Flashcards

Flashcards in Understanding Markets Deck (12):
0

Demand

the quantity of a good or service that consumers are willing and able to buy at a given price in a given time period

1

Factors that affect demand

. Price
. Income
. Seasonality
. Competition
. Marketing

2

What happens when there's an increase in income

. Demand for luxury goods, eg. Holidays, cars increases
. Demand for cheap goods, eg. Discount stores, value brands decreases

3

The amount spent on luxury goods is AKA

Disposable income

4

Basic goods is AKA

Essential goods

5

What happens when there a decrease in disposable income

Demand for luxury goods decreases and essential goods are bought as cheaply as possible

6

Market

anywhere where buyers and sellers come together to transact with each other.

7

Physical market

buyers and sellers come together in the same location

8

Electronic market

Businesses find their customers using a variety of electronic media, including the Internet, mobile telephony, digital television and via email. Transactions are completed electronically with the delivery method depending on the nature of the product sold.

9

The 2 types of geographical market

National and local

10

Local market

Where customers are a short distance from suppliers

11

National market

A market where customers are spread throughout the country or over a large area