business environment

652 Words3 Pages
The cost of a product lets us know the quality of that item regarding cash. A sensible customer will attempt to get the best esteem for cash used on products and services. He will then in this method considers and looks at the costs of items before settling on a choice to buy. Costs in a business economy are controlled by the level of interest and the level of supply for every specific item. The interest for a specific item is the measure that customers are ready and equipped to purchase at a given cost. The law of interest states that when costs of popularity will fall and when costs are low demand rise. (Importance on all different things remaining unchanged.). The supply of a specific item is the sum that organizations are ready and equipped to supply at a given cost. The point when costs are high supply wills rise and when costs are low supply fall. Suppliers are willing to offer more at higher costs as benefits will be high, and unwilling to offer substantial amounts when costs fall in low overall revenues. The equilibrium cost in a specific business sector is the cost at which buyers and suppliers are ready to exchange a certain amount of stocks/products. TASK 2 a) Use a range of examples to illustrate the relationship between market forces and Organizational responses. I. Demand – It explains the consumers wants and needs and their willingness to a specific product. II. Supply – It is sum of goods and services that is to reach to its customers, as customers demand the consumers supply the specific product the customers are demanding. III. Elasticity of demand – A small large in price leads to a large number of quantity. It is a measurement between a change in quantity demanded for a spe... ... middle of paper ... ...the environment around the firm located in. - Which place/area would be more profitable? - What type of consumers will buy the kind of product? - Make sure consumers are enough attracted to the product. - What segment of people will get into the firm/organization? iii) Legality - - What kind of product it is, and whether it is illegal or legal in the specific region. - What kind of license/agreement should be done with the legal form? - What type of form will the business be better in workplace, whether a sole proprietor or partnership. - What would be the advantages of the different kind of licenses/agreements? iv) Financial Accounts - - What would be the expected income. - What would be the expected salary/expenses? - How many labors need to be trained? - What amount of tax would be applied on to the type of business? - Accounts depending on the insurance.
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