Question

Economic factors affect business environment

Answer 1

Economic Factors Affecting Business Environment

Demand and Supply

There are two great economic factors affecting business models work – demand and supply. Demand is how willing and able a consumer is to purchasing what a business offers and supply is how able the business is to make available what the consumer needs. For example, when a mobile phone infused with the latest technology is introduced to the market, it fetches a higher price due to the high demand in markets, and the prices remain high if the demand is more than the supply