Supply and Demand
- Created by: rockboy3080
- Created on: 18-12-17 14:15
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- Supply and Demand
- Factors which directly affect supply
- Number of producers- More producers, lower price and vice versa
- Low Business Tax- less revenue lost and more to re-invest
- Complements- Making other products essential to the other (E.G: Car and Petrol) revenue will increase
- Climactic Change- Products can be made and shipped in certain weather
- Technology- better technology can reduce labour costs
- Cost of production change- Revenue changes depending on the costs of production
- Expand or Contract- money will be lost or gained depending on which route and how successful it is
- Factors which affect demand directly
- Income- people may be able to spend more or less
- Advertising- Attracts more customers
- Weather- product's like coats will be demanded more in certain conditions
- Subsidy- The cost of the product will fall
- Future demand- People may by more if they believe price will rise in the future
- Quality- quality will bring repeat business
- Substitutes- lower prices for similar product will lose the business custmomers
- Factors which directly affect supply
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