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Unit 4 Business Environment - Investigate the behaviour of organisations and the market environment

Supply and demand

“an economist is somebody who knows the price of everything and the value of nothing”

In every market there is a demand for the product and a supply of that product.

What is Demand?

Demand can be best defined as the quantity of a good or service demanded by consumers at each price level. Demand is the willingness of the consumer to want and to pay for that good or service at that price level.

Factors which Influence Demand

In a business to business market, the "consumer" can be another business.

What is Supply?

Supply can be best defined as the quantity of a good or service supplied by suppliers at each price level. Supply is the willingness of the supplier to supply and sell that good or service at that price level.

Factors which Influence Supply

Activity

Think of factors which would cause shifts to the left?

Think of factors which would cause shifts to the right?

Equilibrium

When the quantity supplied is equal to the quantity demanded we have equilibrium.

Supply and demand activity

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Book Recommendation

HNC/HND Business Core Unit 4: Organizations, Competition and Environment: Study Text (2000) - Buy it
Part of the HNC/HND business series, this text on organizations, competition and environment features a blend of topic coverage and practice opportunities with BTEC guidelines, key definitions, timed activities and assignments, and topics for class discussion. It is suitable for both classroom and individual study. Buy it from amazon.co.uk.

All content copyright © 2007 - 2013