20XX Business Essentials Presentation By Valeen Welcome How demand and supply affects this Business? DEMAND AND SUPPLY IN BUSINESS • In this business, once the demand is high, prices generally increase across the board. • When supply is low, prices increase as well. • When supply is in abundance, prices will be reduced. • When there is not a high demand for the product, prices will also be reduced for it. 2 What are essential factors of production are most central to the firm’s operations ? Production in a Business • In this business, production is not an essential part. When they do, prices will increase once raw materials are no longer available, because the demand will be high and the supply will be low. 3 How fluctuations in economic indicators affect this business? ECONOMIC INDICATORS IN BUSINESS • In this business, with regards to economic indicators, if there is not enough disposable income and prices are high, this will negatively affect this business due to people not buying goods or products that they do not need. They will only purchase the necessities. • This business will be affected if those necessities are not meant because the business will be left with stock at hand and low profitability. 4