Demand and Supply Demand and Supply are two crucial elements of a business’ success. Demand is the amount of the product/service that is required to meet need. Supply, is the amount of a product/service that is available to fulfill that need (at a specified price). As the service offered by the business is one of luxury, the amount demanded by customers will be highly influenced by the economic state. Therefore the main factor that will affect demand for it is price i.e. ticket, food and merchandise prices. This means that in times of recession and during periods of wide spread financial difficulty, the business is likely to see a decrease in demand for their service. As stated in (Mintel 2010) ‘Half of those who participate in leisure activities have cut back on at least one activity during the recession. Three out of ten have cut back on three or more activities.’’ However, fortunately for the business, more recent reports highlight that this may not be a worry ‘’The figures for the third quarter in 2013 show consumer spending activity increased by 0.8%, faster than any other quarter since 2010.’’ (Mintel 2013). Other factors that may also affect the demand of the business’ services include, the quality of the service, the taste of the consumers, the size of the population, advertising and the number of competitors in the market (Econport 2006) – which isn’t a concern due to the rarity of the service. (Appendix 1) The amount of product/service that the business is willing to supply relies on how much customers are willing to pay. Producers will try to get the highest price possible whereas customers will try to get the lowest, meaning the price of a product eventually balances out at the ‘equilibrium’ price. In this case, th... ... middle of paper ... ...nglandbasketball.co.uk/articles/article.aspx?aid=287&pid=668 . Last accessed 2nd January 2014. • ITV plc. (2014). Let's talk about cost. Available: http://www.itvmedia.co.uk/tools/rates . Last accessed 3rd January 2014. • Monster. (2013). UK average salaries. Available: http://career-advice.monster.co.uk/salary-benefits/pay-salary-advice/uk-average-salary-graphs/article.aspx . Last accessed 3rd January 2014. • Radio advertising. (2013). How much does advertising cost?. Available: http://radioadvertising.co.uk/costs. Last accessed 3rd January 2014. • SLOMAN, J and WRIDE, A (2009) Economics, 7th Ed. • Printing Direct Uk. (2014). A4 leaflet printing. Available: http://www.printingdirect.com/products/leaflets.php?s=a4 2014 . Last accessed 2nd January 2014. • Sport England. (2012). Funding. Available: http://www.sportengland.org/funding/ . Last accessed 4th January 2014.
The idea of supply and demand tends to benefit the company when demands are limited. When items are rare and limited companies have a higher ceiling to price products because the consumer is willing to pay more. On websites like Ebay consumers always pay more than retail price showing that the demand is even higher. All sorts of factors such as limited quantities on released dates or limited new products of much wanted products cause the demands. The people are always looking for the next best thing so the demand for it is there even before the product is created and released.
Supply and demand is defined as the relationship between the quantity that producers wish to sell at various prices and the quantity of a commodity that consumers wish to buy. In the functioning of an economy, supply and demand plays an important role in the economic decisions in which a company or individual may make.
When asked, “What, in your own opinion, would make another successful in this position?” he said, “You need a lot of people skills.” He believes in order to run a barbershop; you need to be able to meet the needs of the customer. If the customer is not satisfied, you will lose their business. You must be patient. If not, the customer will not return for more service. It’s all about keeping the customer satisfied. This led him to the topic of supply and demand. Most of his profit is dependent on what the customer wants. For example, if the customers come in and want to purchase a bottle of water, you have to provide the water at their convenience. This will keep the customer satisfied and ensure their return for more business. Sometimes business gets slow. He feels the need to bring in more customers. To achieve this goal, he offers various incentives such as discounts. The discounts allow more people to come in and e...
"Pros and Cons of IVF - IVF & Regulation." Pros and Cons of IVF - IVF & Regulation. N.p., n.d. Web. 20 Feb. 2014.
Sherlock, R. (2014, March 30). What is Quality of Life? Retrieved from Community Living British Columbia: http://www.communitylivingbc.ca/projects/quality-of-life/what-is-quality-of-life/
What do you understand by the phrase “stakeholder analysis”? Attempt a stakeholder analysis of an organisation that you are closely associated with.
As with all markets and their respective economies, having equilibrium is one of the key factors of a successful system. Although most markets do not reach equilibrium, they attempt at getting close. There are numerous methods devised to reach equilibrium, whether they involve human intervention directly or a cumulative decision by all factors involved. These factors may be a seller's willingness to lower overall revenue, or a buyer's willingness to withhold some demand for a certain product. Of course, the basics of supply and demand retrospectively control the equilibrium in the market.
Jampel, S. (2013, July 13). What A Pack Of Cigarettes Costs Now, State By State. Retrieved from The AWL: http://www.theawl.com/2013/07/what-a-pack-of-cigarettes-costs-now-state-by-state
In conclusion, generally speaking the Law of Supply states that when the selling price of an item rises there are more people willing to produce the item. Since a higher price means more profit for the producer and as the price rises more people will be willing to produce the item when they see that there is more money to be earned. Meanwhile the Law of Demand states that when the price of an item goes down, the demand for it will go up. When the price drops people who could not afford the item can now buy it, and people who are not willing to buy it before will now buy it at the lower price as well. Also, if the price of an item drops enough people will buy more of the product and even find alternative uses for the product.
"Salary Reports, 2013 Wage Forecast, Market Compensation | WageWatch Ibrief Blog." WageWatch Ibrief Blog RSS 092. N.p., 30 Jan. 2013. Web. 15 Apr. 2014.
A largely accepted language is required for a business or organization to effectively communicate its results and position to stakeholders, which is why accounting has come to be known as the "language of business". Accounting is really the means for providing financial information to others. Financial analyst then take the data the accountants have compiled in the form of reports, and make educated guesses at what their company should do next. David ballast (1996) stated, "The fact remains that accounting and finance are the primary tools for reducing business problems and opportunities to a common denominator, setting goals, measuring results, and making decisions." (p. 1)
...Mercedes-Benz Prices with MSRP & Invoice. (n.d.). In True Car. Retrieved December 3, 2013, from http://www.truecar.com/prices-new/mercedes-benz/
The revenue/cost period-: Revenue and the cost period in accounting that the company get income from normal business activities. It’s referred to normal business income that the company got by selling their product and service.
All firms are depending on market and customers because if customers will stop buying goods supply and demand of products will be down.
What does supply and demand mean? Demand indicates the quantity of a product or service that is aspired by