1. external environment

Question 1

political factors

Answer 1

• gov cut taxes to increase demand
• raise taxes to reduce demand

Question 1

market conditions

Answer 1

a wide range of factors affecting the market. they influence the cost faced by businesses and the demand for their products

Question 2

labour supply

Answer 2

• has an effect on the business cost
• unemployment rates are high = good labour supply
• low unemployment = low labour, need training = increase costs

Question 3

incomes and economic factors

Answer 3

• recession = reduce costs with wage costs or redundancies
• lower income = lower demand
• high costs from an economic boom, higher demand

Question 4

seasonal demand and supply

Answer 4

• variations of supply and demand throughout the year