Glossary
D: Examine business markets
Unit 1: Exploring Business
Demand - The number of goods and services customers are willing and able to buy at every price level.
Imperfect competition - A market structure where sellers provide goods and services that are different to each other and therefore market forces do not apply
Influences on demand - Affordability, competition, availability of substitutes, level of Gross Domestic Product (GDP), needs and aspirations of consumers
Influences on supply - Availability of raw materials and labour, logistics, ability to produce profitably, competition for raw materials, government support
Market structures - The number and relative size of businesses selling the same product as each other. E.g. perfect competition, imperfect competition, monopoly and oligopoly.
Monopoly - Where one seller owns a dominant share of the market.
Oligopoly - Markets where there a a few dominant players in the market such as supermarkets and airlines.
PED formula - % change in QD / % change in price Perfect competition - A market structure in which a large number of businesses all produce and/or sell the same product.
Price elasticity of demand - The responsiveness of demand to a change in price.
Pure monopoly - Where there is only one seller of a product in the market.
Supply - The number of goods and services produce are willing and able to buy at every price level.
