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A-Level Business Studies > Miss Blackwell > Flashcards

Miss Blackwell Flashcards

1
Q

What is Demand?

A

The amount of a good/service that customers are willing and able to buy

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2
Q

What is Supply?

A

The amount of a good/service that sellers are willing and able to sell at any given price

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3
Q

What is the Equilibrium price?

A

The situation in a market where demand is equal to supply. i.e. Both parties are happy. Customers can buy what they want and shops have no unused stock

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4
Q

What is the formula for revenue?

A

Revenue = costs - profit

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5
Q

What are the factors for demand?

A 
Price
Income
Number of substitutes
Price of compliments
Taste
Advertising
Population
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6
Q

What are the factors for supply?

A 
Price
Costs
Taxes
Subsidies
Price of alternatives
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7
Q

What is elasticity of demand?

A

Measures how sensitive quantity demanded is to a change in price

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8
Q

Why would a product be elastic?

A

Many substitutes

It is a luxury

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9
Q

Why might a product be inelastic?

A

Few substitutes

A necessity

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10
Q

What is a complement?

A

A product that is necessary for the function of another product e.g. DVD and DVD player

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11
Q

What is Wealth?

A

The total assets a person owns

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12
Q

What is income?

A

The amount of money a person earns from their job

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13
Q

What is equilibrium?

A

The point where supply meets demand

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14
Q

What are demographics?

A

The characteristics of the population

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15
Q

What is tax?

A

The amount of money paid to Government

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16
Q

What is a subsidy?

A

A payment from Government to increase the supply of certain products

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17
Q

What is a substitute?

A

An alternate product with the same purpose

18
Q

What is competition?

A

Rivalry amongst sellers

19
Q

What is a market?

A

Where buyers and sellers meet

20
Q

What are the two types of markets?

A

Physical and non physical

21
Q

What is Market Price?

A

The price range for a product in a market at which the consumer is willing to pay

22
Q

What is Mark Up?

A

The difference between the costs of producing an item and the price at which it is sold

23
Q

What are the four types of markets?

A

Competitive market
Monopoly
Monopolistic Competition
Oligopoly

24
Q

What is a Competitive market?

A

Lots of sellers

Low prices

25
Q

What is a Monopoly?

A

Few sellers
High prices - Usually except for economies of scale
25% market share

26
Q

What is Monopolistic Competition?

A

A lot of sellers
Medium prices
Non price differences

27
Q

What is an Oligopoly?

A

A few sellers

High but similar prices

28
Q

What is Revenue?

A

The total amount of sales

29
Q

What is Profit?

A

Capital left over

30
Q

What is Market Size?

A

The collective value of the goods/services that buyers purchase

31
Q

What is Market Growth?

A

The percentage of growth in the size of the market, measured over a specific period

32
Q

What is Market Share?

A

The percentage of total sales (by value) that a business has in a specific market

33
Q

What are Barriers to entry?

A

The factors that could prevent a firm from entering and competing in a market

34
Q

What are Barriers to exit?

A

The factors that could prevent a firm from leaving a market, even if it wanted to

35
Q

Give 5 examples of a Barriers to entry?

A 
Large start up costs
Having a marketing budget
Lack of economies of scale
Possibility of a price war
Legal restrictions
36
Q

Give 3 examples of a Barriers to exit?

A

Difficulty of selling capital
High redundancy costs
Contracts with suppliers

37
Q

What is Market Dominance?

A

A measure of market share compared to competitors

38
Q

What is Market Power?

A

The ability of a firm to influence the conditions (i.e. higher prices) on which goods are bought and sold

39
Q

What is a Merger?

A

Where two large companies join together to form a new, larger business

40
Q

What is an Acquisition/Takeover?

A

Where control of a company is achieved by buying a majority of its shares

41
Q

What are 3 disadvantages of Mergers and Takeovers?

A

Diseconomies of scale
Redundancies
Higher price for customers

A-Level Business Studies (2 decks)

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