Unit 2b Business Economics

a) Factors leading to a change in demand: o changesinthepricesofsubstitutesand complementary goods o changesinconsumerincomes o fashions, tastes and preferences o advertising and branding o demographics o external shocks o seasonality

a) Factors leading to a change in supply: o changesinthecostsofproduction o introductionofnewtechnology o indirect taxes o government subsidies o external shocks

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

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

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

The document entails questions and answers for Business economics (CB2) for quick revision. it is also the same as Economics business