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Form 3 Business Studies Notes

Institution: Secondary Level

Course: Business Studies

Content Category: Form 3 Notes

Posted By: oriango

Document Type: PDF

Number of Pages: 81

Price: KES 290
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Summary

Form 3 teaching notes for Business Studies. Comprehensive Form 3 business studies notes for students and teachers.

Brief Overview:

Factors that influence the demand of a product/determinant of demand.
a.) Price of the commodity
When the price of a product increases its demand decreases and when the price decreases its demand increases.
b.) Level of consumer income
An increase in consumers disposable income generally leads to an increase in the demand for goods and services because the ability to buy increases.
c.) Price of other related products
Commodities are related in two ways. That is as either complimentary or as a substitute. Complementary are goods used together while substitutes can be used instead of each other. Hence the demand for a commodity can be affected by the prices of other commodities depending on the relationship. Reduction of price of a substitute will reduce the demand of the substituted goods while increase in price of the complimentary goods will reduce the demand for the goods.
d.) Changes in taste, fashion and preference of consumers
If taste change in favor of commodity, more of that commodity is likely to be bought even if it’s expensive


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