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Supply and demand, Price elasticity of demand, Demand, Income elasticity…
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Demand
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How price effects demand
Value
The higher the price the less good value the item will seem compared with other ways of spending the money
Cheap
If the price for a product is too low customers will view the product as low quality and are more likely to pay for a more expensive product
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Demand risks
Universified demand
When there is a surge of demand for a particular product, the business can become reliant on the product. This means when the trend fades, the business can go bust
Overtrading
Sometimes small businesses grow so fast that they struggle to generate enough cash to meet rising bills due to rising production levels
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Supply
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A supply curve curves upwards because (thinking from a business' point of view) when the price increases, they will make more money off a product with a higher price