Edexcel Business A Level Revision

Protectionism - is any attempt by a country, trade bloc or region to impose restrictions on the import of goods and services. Import Quotas - A type of protectionist measure on trade that sets a restriction on the physical limit on quantity of a good that can be imported into a country in a given period of time. Quotas, like other trade restrictions, are typically used to benefit the producers of a good at the expense of the consumers in that economy. Import quotas are quantitative limits on the level of imports allowed or a limit to the value of imports permitted into a country in a given period of time. Often licenses are granted to importers to the exclusion of other global businesses. Quotas do not normally bring in any tax revenue for the government. Benefits of import quotas include; Keeping the volume of imports unchanged even when demand for imported products increases Local jobs may be created or protected, leading to a greater tax revenue More flexible than tariffs ...

Sales volume - The amount of sales expressed as a number of units sold Sales revenue - is the amount of sales expressed as the total sum of money spent by consumers. Revenue is the money coming in from the sale of goods and services. Fixed costs - Fixed costs do not change as output varies.  In other words, they are fixed even if output moves up or down from period to period. Variable costs - Costs which change when output changes are called “variable costs” Total costs - Fixed costs + Variable costs Sales volume =Sales revenue / Selling price Sales revenue = selling price x quantity sold Total variable costs = number of units sold x variable cost per unit Total costs = Fixed costs + variable costs     This is what fixed, variable, total costs and revenue would look like on a graph   1) Revenue  Increases with the amount of units sold and therefore starts at 0 and slopes upwards when shown on a graph. 2) Fixed Costs  Fixed ...

Price elasticity of demand (PED) - Measures the extent to which the quantity of a product demanded is affected by a change in price. The demand for goods and services varies depending on a range of factors. Elasticity - measures the responsiveness of demand to a change in a relevant variable - such as price or income. PED IS CALCULATED AS : % Change in Quantity Demanded ÷ % Change in Price Price Elastic - More than 1 Price Inelastic - Less than 1 Unitary price elasticity - Exactly 1 Price elastic = Change in demand is more than the change in price. Price inelastic = Change in demand is less than the change in price. Unitary price elasticity = change in demand is equal to change in price. Example of Inelastic demand: Gasoline has inelastic demand . This means that when there's an increase in the price of gasoline, the quantity demanded decreases just a little bit. So when the demand is inelastic, the quantity is insensitive to a change in p...