Understanding Markets

Question 0

Factors that affect demand

Answer 0

. Price 
. Income
. Seasonality
. Competition
. Marketing

Question 1

Demand

Answer 1

the quantity of a good or service that consumers are willing and able to buy at a given price in a given time period

Question 2

What happens when there’s an increase in income

Answer 2

. Demand for luxury goods, eg. Holidays, cars increases

. Demand for cheap goods, eg. Discount stores, value brands decreases

Question 3

The amount spent on luxury goods is AKA

Answer 3

Disposable income

Question 4

Basic goods is AKA

Answer 4

Essential goods

Question 5

What happens when there a decrease in disposable income

Answer 5

Demand for luxury goods decreases and essential goods are bought as cheaply as possible

Question 6

Market

Answer 6

anywhere where buyers and sellers come together to transact with each other.

Question 7

Physical market

Answer 7

buyers and sellers come together in the same location

Question 8

Electronic market

Answer 8

Businesses find their customers using a variety of electronic media, including the Internet, mobile telephony, digital television and via email. Transactions are completed electronically with the delivery method depending on the nature of the product sold.

Question 9

The 2 types of geographical market

Answer 9

National and local

Question 10

Local market

Answer 10

Where customers are a short distance from suppliers

Question 11

National market

Answer 11

A market where customers are spread throughout the country or over a large area