Tag: change
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Change in structure of Business organization
Effect of changes in structure of business organizations When public corporations are sold to the private sector it is called privatisation Effects of privatization: – Business efficiency (low cost, high quality)What determines the demand for factors of production
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Change in earnings
Changes in earnings over time for an individual Change in earnings occurs due to change in demand for labour and change is supply of labour If demand for labor increases the earnings increases If supply of labor decreases the earnings increases
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Price elasticity of demand
Price elasticity of demand It is a measure in economics to show the responsiveness of the quantity demanded of a good or service to a change in its price. PED = % change in quantity demanded % change in price
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Change in supply
Causes of changes in supply Change in input costs (labor/natural resources/etc.) Change in technology Change in number of supplies Change in taxation policies Disasters and calamities
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Change in demand
Causes of changes in demand Change in price of a compliment good Change in price for substitutes Change in income, for normal goods, a change will cause an increase in demand Change in the number of consumers Change in information/technology
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Tax changes affect business
How different tax changes affect business The tax which affects the business is called the corporation tax This is a tax which businesses have to pay If there is an increase in this tax it will have the following affects: Lower profits Less money for reinvestment New businesses discouraged to do business