Edexcel A Level Business Unit 1.2 Market 5 lesson BUNDLE

1.2.1
Demand
a) Factors leading to a change in demand:
o changes in the prices of substitutes and
complementary goods
o changes in consumer incomes
o fashions, tastes and preferences
o advertising and branding
o demographics
o external shocks
o seasonality
1.2.2
Supply
a) Factors leading to a change in supply:
o changes in the costs of production
o introduction of new technology
o indirect taxes
o government subsidies
o external shocks
1.2.3
Markets
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
1.2.4
Price elasticity of
demand
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 interpretation of the relationship
between price elasticity of demand and total revenue
1.2.5
Income elasticity of
demand
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