Theme 1 Flashcards
1
Q
Markets can change because of…
A
- Size, grow/shrink affected by PLC
- Nature, product/service providing consumer trends
- New developed technology
2
Q
How can businesses adopt to change?
A
Develop niche, continuous improvement, investment, market research, flexibility
3
Q
What is market growth
A
An increase in demand for a particular product/service
4
Q
Niche market?
A
Small market that suits customers specific needs
5
Q
What’s a brand?
A
A unique design or logo which represents the product and differentiate from competitors
6
Q
What is an inferior good?
A
An inferior good is an economic term that describes a good whose demand drops when people’s incomes rise.
7
Q
Income elasticity formula
A
%Change in quantity demanded/%change in income
