Economics

Supply

The law of …. is that the higher the price at which a good or service can be sold, the higher the quantity that producers are willing to ….. 

Demand

The law of …. is that when prices rise, the quantity …. decreases, and when prices fall, the quantity …. increases. 

Increase in Demand

When prices fall, the quantity ... increases. 

Increase in Supply

is called an increase in .... and is only caused by a rise in price

Decrease in Demand

When prices rise, the quantity .... decreases

Decrease in Supply

decrease in .... and is only caused by a fall in price

Equilibrium

Quantity supplied equals quantity demanded.

Product

An item or service sold to customers.

Service

An action or skill that is performed for you.

Market Oportunity

A chance to sell a product or service.

Target Market

The group of people a business wants to sell to.

Needs

Things necessary for survival

Wants

Things people would like, but do not need. Which are endless

Opportunity Cost

The next best alternative given up when making a choice

Relative Scarcity

Resources are limited, but wants are unlimited.

Entrepreneur

An individual who is willing to risk personal assets to start new business ventures in the pursuit of profit

Goods

A physical, tangible object that you can touch.

Cost Benefit Analysis

It is a way of deciding if something is worth doing.

Business Structure

Possible future expansion

Personal preferences

Size of the business

Number of people involved

Industry sector

Financial requirements

Demand Non Price Factors

Consumer Confidence

Taste and preferences

Complimentary Product

Substitute product

Interest rates

Population size

Change in disposable income

Supply Non-Price Factors

Costs of Production

Climate Conditions

Technology

starting a business

Identify the market opportunity

Identify the product or service to be sold

Identify the ownership structure

Identify the target market

Change in Price

A movement along the demand curve occurs when there is change in the … of the good or service.

Factors of Production

Land, Labour and Capital

Land - Factors of Production

Natural resources are inputs that occur in nature 

Labour - Factors of Production

…. resources are the skills, knowledge and manual effort that people provide as members of the nation’s labour force

Capital - Factors of Production

…. resources involve manufactured or producer goods.