Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business Ethics > Market Influences On Business > Flashcards

Market Influences On Business Flashcards

1
Q

Illustrates the maximum quitting of a good that consumers are willing and able to purchase at each and every price

A

Demand curve

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Dictated by price - the quantity of a good individuals are willing and able to purchase t each and every price

A

Quantity demanded

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Change in the amount of a good demanded resulting solely from the change in price

A

Change in quantity demanded (slide along the demand curve)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Change in the amount of a good demanded resulting from a change in something other than the price of the good

A

Change in demand (shift of the demand curve)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Using the substitution effect, as the price of coke increases what would happen to cokes demand and Pepsis demand?

A

Cokes demand would slide down, and pepsis demand would shift right

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What factors would shift the demand curve (shifts occur due to things other than price)

A

Change in wealth (if wealth goes up, demand goes up)
Changes in price of related goods (if price of related goods go up, demand for current good go up)
Changes in consumer income (if income goes up, demand goes up)
Changes in consumer preferences
Changes in consumer expectations (if price in future expected to go up, demand now goes up)
Changes in number of buyers (if buyers go up, demand goes up)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What’s the difference between a change in quantity demanded vs a change in demand?

A

A change in quantity demand = a slide on the price/quantity graph
A change in demand = a shift on the price/quantity graph because price (the y axis) does not effect demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

How are demand and supply sloped on the price/quantity graph?

A 
Demand = negatively sloped
Supple = positively sloped
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Illustrates the maximum quantity of a good that sellers are willing and no able to produce at each and every price

A

Supply curve

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

The amount of a good that producers are willing and able to produce at each and ever price

A

Quantity supplied

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Change in the amount producers are willing and able to produce resulting solely from a change in price

A

Change in quantity supplied (slide along the supply curve)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Change in the amount of a good supplied resulting from a change in something other than price of the good

A

Change in supply (shift of the supply curve)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Factors that shift the supply curve are:

A

Changes in price expectations (price goes down, supply goes up)
Changes in production costs (price goes down, supply goes up)
Changes in the price or demand for other goods we sell
Change in subsidies or taxes (taxes go down, supply goes up)
Changes in production technology

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What’s the difference between the change in quantity supplied and the change in supply on the price/quantity graph?

A

Change in quantity supplied = as price goes up, quantity supplied slides up
Change in supply = as other factors increase, supply shifts right

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What effect does an increase or decrease in demand have on the market equilibrium?

A

If increase in demand - price increases, quantity increases

If decrease in demand - price decreases, quantity decreases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What effects does an increase or decrease in supply have on the market equilibrium?

A

Increase in supply - price decreases, quantity increases

Decrease in supply - price increases, quantity decreases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

If demand increases and supply increases what happens to equilibrium quantity and equilibrium price?

A

Quantity increases, price has no change

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

When demand increases and supply decreases, what happen to equilibrium quantity and price?

A

Quantity is unchanged, and price increases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

When demand decreases and supply decreases, what happens to equilibrium quantity and price?

A

Quantity decreases and price has no change

20
Q

When demand decreases and supply increases, what happens to equilibrium quantity and price?

A

Quantity is unchanged and price decreases

21
Q

The maximum price that is established below the equilibrium price which causes shortages to develop because quantity demand is greater than quantity supply

A

Price ceilings

22
Q

The minimum price set above the equilibrium price which causes surpluses to develop because quantity demand is less than quantity supply:

A

Price floors

23
Q

Formula for price elasticity of demand:

A

% change in quantity demanded / % change in price

24
Q

The absolute price elasticity of demand is less than 1.0 is:

A

Price inelasticity

25
Q

The absolute price elasticity of demand is greater than 1.0 is:

A

Price elasticity

26
Q

The absolute price elasticity of demand is equal to exactly 1 is:

A

Unit elasticity

27
Q

Price elastic on deman - what is the impact of price increase or decrease on total revenue?

A 
Increase = total revenues decrease
Decrease = total revenues increase
28
Q

Price inelastic of demand - what is the impact of price increase and decrease on total revenue?

A 
Increase = total revenue increases
Decrease = total revenue decreaes
29
Q

Price unit elastic of demand - what is the impact of price increase or decrease on total revenues?

A

No effect

30
Q

Formula for price elasticity of supply:

A

% change in quantity supplied /% change in price

31
Q

Formula for cross elasticity of demand =

A

% change in number of units of X demanded / % change in price of Y

32
Q

Formula for income elasticity of demand =

A

% change in number of units of X demanded / % change in income

33
Q

If the cross elasticity of demand/supply returns a positive number, the two goods are what? If a negative number, what?

A 
Positive = substitutes
Negative = complementary
34
Q

If the income elasticity of demand/supply formula returns a positive number, what does that mean of the product? If returns a negative number, what does that mean?

A 
Positive = a normal good
Negative = an inferior good
35
Q

Assists in developing appropriate strategic plans

A

SWOT Analysis (strengths, weaknesses, opportunities, and threats)

36
Q

Internal factors that affect strategy are sources of strengths and weaknesses like:

A

Innovation
Competence of managers
Core competencies (why we are successful)
Marketing effectiveness

37
Q

External factors that affect the overall industry’s opportunities and threats are:

A 
Economy
Regulations and laws
Demographics of population
Technology advances
Social and political values
38
Q

External factors that affect the firm’s opportunities or threats:

A

Barriers to market entry
Competitiveness
Substitute products
Bargaining power of customers and vendors

39
Q

Porters five forces include:

A 
Barriers to entry
Market competitiveness
Existence of substitute products
Bargaining power of the customers
Bargaining power of the vendors
40
Q

Two types of competitive strategies:

A

Cost leadership

Differentiation

41
Q

Firm is able to produce and sell its product for less than its rivals. The firm can build market share by reducing the selling price to below the competitor’s, OR match the selling price of rivals because their costs are lower:

A

Cost leadership

42
Q

Buyers are better off because the customer perceives the firms product to be superior in some way to those of its rivals. The firm can build its market share and/or increase prices:

A

Differentiation

43
Q

Main goal of cost leadership strategy is to:

A

Decrease selling price and increase volume

44
Q

Main goal of differentiation strategy is to:

A

Differentiate their product and increase selling price

45
Q

Combines the cost leadership strategy with the differentiation strategy:

A

Best cost strategy

Business Ethics (26 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions