Business Unit One Flashcards
1
Q
What is the law of demand?
A
As price increases, demand decreases as price decreases demand increases
2
Q
What is the law of supply?
A
As price increases supply increases as price increases supply decreases
3
Q
How do businesses compete?
A
Products and services offered
Quality
Location and/or convenience
Customer service
Price
4
Q
What are the determinants of demand?
A
Consumers income
Consumers preferences
Price of related goods and service
Number of consumers in a market
Expectations of buyers
5
Q
What are the determinants of supply?
A
Prices or resources used to make
Tech used to make
Number of sellers in the market
Expectations of producers
Government action
Natural disasters and international events
