1.3.2 Identifying a Business Opportunity

Question	Answer
Definition of a Market	A place where buyers and sellers meet, in order to exchange goods and services for money
Definition of Demand	The quantity of a good/service that buyers wish (or are willing) to purchase at a given price
A Change in price results in a 'what' along the demand/Supply curve	Movement
Three factors which result in a Shift along the Demand Curve	Price of other goods Advertising Attitudes & Information
Definition of Supply	The amount of a product that suppliers offer for sale at a given price
Is supply a direct or indirect relationship between price and quantity?	Direct
Three other factors which result in a Shift along the supply curve	Cost of production Changes in production technology Government Taxes/Subsistutes
Definition of Equilibrium Price	The price at which quantity demanded is the same as quantity supplied
What can be called 'The Market Clearing Price'?	Equilibrium Price
Definition of Market Orientation	Where the needs of the customer are overriding priority in the production & marketing of products/services
Market orientation can lead to...	Brand Loyalty which results in the company being able to charge high prices

Resource summary

	Created by Molly Hills over 9 years ago