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summary unit 2

demand, supply, markets, income elasticity of demand, price elasticity of demand.

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Summary Unit 2b - Business Economics Income elasticity of demand

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a)Calculation of income elasticity of demand b) Interpretation of numerical values of income elasticity of demand c) The factors influencing income elasticity of demand d) The significance of income elasticity of demand to businesses

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Summary Unit 2b - Business Economics price elasticity of demand

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a) Calculation of price elasticity of demand b) Interpretation of numerical values of price elasticity of demand c) The factors influencing price elasticity of demand d) The significance of price elasticity of demand to businesses in terms of implications for pricing e) Calculation and interpret...

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Summary Unit 2b - Business Economics markets

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a) The interaction of supply and demand b) The drawing and interpretation of supply and demand diagrams to show the causes and consequences of price changes

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Summary Unit 2b - Business Economics supply

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a) Factors leading to a change in supply: o changesinthecostsofproduction o introductionofnewtechnology o indirect taxes o government subsidies o external shocks

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Summary Unit 2b - Business Economics demand

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a) Factors leading to a change in demand: o changesinthepricesofsubstitutesand complementary goods o changesinconsumerincomes o fashions, tastes and preferences o advertising and branding o demographics o external shocks o seasonality

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