Inflation Flashcards
1
Q
What is inflation?
A
The rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling.
2
Q
Impact 1 on a business:
A
The price for raw materials will increase. (Point) The impact of this is that the price of the final product will have to increase to keep maintaining a profit. (Impact) This could then give customers the idea to look for lower priced product instead of your product. (Explain)
3
Q
Impact 2 on a business:
A
P- competition change
I- Might lose sales due to stronger competition
E- loss of profit
4
Q
Impact 3 on a business:
A
P-
I-
E-
