1. Prices in a market are determined by the conditions of demand and supply and these conditions can change fo
a number of different reasons at any time.
 
(1) Describe what is meant by demand.
(2) Using a demand and supply diagram, analyse the likely effect of an increase in advertising on the equilibriu
price and equilibrium quantity of a product in a market.
(3) Describe the concept of price elasticity of demand.
(4) Discuss the extent to which knowledge of price elasticity of demand is of use to a business.

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Demand refers to the quantity of a good or service that consumers are willing and able to purchase a... View the full answer