Flashcards in Understanding Markets Deck (12):
the quantity of a good or service that consumers are willing and able to buy at a given price in a given time period
Factors that affect demand
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
The amount spent on luxury goods is AKA
Basic goods is AKA
What happens when there a decrease in disposable income
Demand for luxury goods decreases and essential goods are bought as cheaply as possible
anywhere where buyers and sellers come together to transact with each other.
buyers and sellers come together in the same location
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.
The 2 types of geographical market
National and local
Where customers are a short distance from suppliers