Econ Ch 7
| A | B |
|---|---|
| demand | amount of good or service consumers able & willing to buy at various prices during specified time |
| supply | amount of good or service producers can sell at various prices during a specified time |
| market | process of freely exchanging goods & services between buyers & sellers |
How price is determined in a market economy?
Market prices are dependent upon the interaction of demand and supply. An equilibrium price is a balance of demand and supply factors. There is a tendency for prices to return to this equilibrium unless some characteristics of demand or supply change.
What is a market for a good?
A market is a place where buyers and sellers can meet to facilitate the exchange or transaction of goods and services. Other examples include the black market, auction markets, and financial markets. Markets establish the prices of goods and services that are determined by supply and demand.
What makes a product or service to sell?
For a product or service to succeed, it must be the right product, being sold at the right time, to the right customer, in the right market. It must be produced and sold by the right company, and the right people.
Why do you need to know cost of goods sold for services?
COGS isn’t just a line item that you need to fill out on your tax return. It’s an important financial metric that can help you analyze your business, understand your costs and make decisions. Whether you’re a product business or a service business, this is a number you’ll want to know.
How to determine market potential for any product or service?
If it is a large business, it is better to take Market research data from companies like Nielson or IMRB. Determination of market size is the first step to determine market potential. The PC market as compared to the laptop market or the smartphone market is declining.
What are services and what are goods and services?
What are Goods and Services? 1 Services. Services are intangible products — those that cannot be seen or touched — that are provided to consumers or other companies. 2 Combinations. Lawn care is a form of service. 3 Taxes. A business consultation is considered a service. …
