Chapter 2 Flashcards
What is the law of demand
the relationship b/w a products price and quantity demanded. It is shown using a curve schedule
What does the law of demand state?
price and quantity demanded are inversely related
What is market demand?
The sum of all quantities demanded by all consumers in a market
What is supply?
The relationship b/w a products price and quantity supplied. It is show using a supply curve.
What does the law of supply state
There is a direct relationship between price and quantity supplied
What environmental factors affect suppliers
Social (demographic, cultural shifts) and Economic (macroeconomic conditions, consumer incomes)
What environmental factor affects organizations
Technological (changing tech, impact on customer value, business tech)
What environmental factors affect customers
Competitive (alternate forms of competiton, small businesses) and regulatory (protection laws of competition and mixing laws)
What are the dimensions of the external environment
Economic, technological, poltical-legal, and socio-cultural
What is economics concerned with
GDP, CPI/Inflation, labour market, interest rates, and international trade
What is GDP
The percentage increase in an economys total output (real GDP) OR the percentage increase in per capita output (per capital real GDP)
What is the balance of trade
The value of all exported products. Exports minus imports.
What is international trade?
Refers to exchange rates strengthen the CDN $, low exchange rate means you can buy more products and services. For other countries Canadian goods are more expensive to buy meaning more imports less exports
What is the poltical- legal environment
Reflects the relationship b/w business and government such as pro/anti business sentiment, political stability, and international relations
What is Socio-cultural environment?
Is concerned with geographics, demographics psychographic, and human behaviour.
