1.2.1 Flashcards
1
Q
What is demand?
A
The amount of a product that consumers are willing and able to purchase at a given price
2
Q
What is a normal good?
A
One where if price rises, demand will fall (vice versa)
3
Q
What is advertising?
A
A promotional method using media to communicate with existing and potential consumers
4
Q
What is branding?
A
A promotional method involving the creation of an identity distinguishing the firm and its products from competitors
5
Q
What is meant by ‘demographics’?
A
Statistical characteristics of the population
6
Q
What are external shocks?
A
Unexpected events that are outside of the businesses control but have a direct impact on the level of demand
7
Q
What is meant by seasonality?
A
Fluctuations in demand depending on the time of year
