#Business law pdf free download how to#

It is one of the two components of the total costs of a good or service, along with variable costsД®xample of fixed costs: costs of building contruction.

Fixed costs are expenses that have to be paid by a company, independent of any business activity.

A costs that do not change with an increase or decrease in the amount of goods or services produced.

The equilibrium market price is where the hypothetical supply and demand curves intersect.

Market equilibrium is the point where supply equals demand for a product.

Optimal weather circumstances (for agriculture).

Increase of number of producers in the market.

What are вЂћother factorsвЂќ which can increase supply?

The law of supply says that as the price of an item goes up, suppliers will attempt to maximize their profits by increasing the quantity offered for sale.

A microeconomic law that states, all other factors being equal, as the price of a good or service increases, the quantity of goods or services that suppliers offer will increase, and vice versa.

Decrease in income if good is inferior good.

Increase in income if good is normal good.

What are вЂћother factorsвЂќ which can increase demand?

When consumers have less wealth, they may forgo using their own forms of private transportation in order to cut down costs (car insurance, gas and other car upkeep costs) and instead opt to use a less expensive form of transportation (bus pass)Д®xample of inferior goods: public transport.

An example of an inferior good is public transportation.

Inferior goods can be viewed as anything a consumer would demand less of if they had a higher level of real income.

A normal good is one that experiences an increase in demand as the real income of an individual or economy increases.

An economic term used to describe the quantity demanded for a particular good or service as a result of a change in the given level of income.

Also, good tends to have more value when paired with a complement than it does by itselfД®xample of complementary goods: printers and ink cartridges.

Usually, the complementary good has little to no value when consumed alone but, when combined with another good or service, it adds to the overall value of the offering.

A good or service that is used in conjunction with another good or service.

A substitute can be perfect or imperfect depending on whether the substitute completely or partially satisfies the consumerД®xample of substitute goods: limonade and juice.

A product or service that satisfies the need of a consumer that another product or service fulfills.

The law of demand says that the higher the price, the lower the quantity demanded, because consumersвЂ™ opportunity cost to acquire that good or service increases, and they must make more tradeoffs to acquire the more expensive product.

A microeconomic law that states, all other factors being equal, as the price of a good or service increases, consumer demand for the good or service will decrease, and vice versa.

Administration of starting-up your businessД«asics of Market Economy Demand, Supply, Market equilibrium, Costs, Microeconomic laws.

Andrius Juskys, Vilnius University International Business School Garri Raagmaa, Center For Adult Learning IRBIS KONSULTATSIOONID LLC Dr.iur. Vera Boronenko, Daugavpils University Dr.geogr.

#Business law pdf free download how to#

HOW TO START YOUR OWN BUSINESS Educational module for adults without special economic educationДr.oec.