In boom the prices are increased, and the inflation rate are increased this means that there is a risk in inflation, and this happens when the supply
and demand will be increased, and the companies are going to be able to increase the prices of their goods and the services. In supply and demand
the staff is going to have more disposable income this means that they are going to be buying more products such as luxury and expensive items,
this means more customers are going in Greggs and buying more products, and Greggs will need more products to be able to produce more
products, and this means the suppliers of Greggs are going to be able to supply more material to be able to produce more products, because the
affordability increases of the customers and they are going to be able to buy products that are expensive this means that they will be able to
increase the prices of the products. However, there are some negatives impacts of them, because everyone will need more raw materials and more
staff and they are going have difficulties in finding better staff and raw material, this means that the demand will be increased however it is going to
be difficult to supply to Greggs. This means that the organisations will be competing to get better staff and raw materials.
D. Explain how elasticity of demand would be affected during a boom and how this would impact your selected organisation.
When the economy is in boom there is going to be an inelastic demand, and the customers are going to be less prices sensitive, so they are going to
be affordable to pay the products that are expensive this means that the customers of Greggs are going to go to the competitors that sell expensive
products such as Costa.
The organisation will need more employees, so this means there is going to be an increase in productivity, however, it is going to be harder if the
organisation is going to offer less salary, because people are going to prefer to go for the higher wages rates.
If there is an increase in everything Greggs will have to pay more wages of the employees, this means everyone would like to get more wage. There
will be also an increase in taxes so people will have to pay more taxes, such as the employees of Greggs and pay back the taxes on the products
that Greggs sell.
Because Greggs is a brand itself the customers will want to buy more products that are branded and are famous, this means that there is going to
be competition between organisations of being the best organisations so that the customers will go more towards that organisation. Greggs could be
affected from this from the organisations that are going to be expensive such as Costa and they are going to choose the best organisation.
and demand will be increased, and the companies are going to be able to increase the prices of their goods and the services. In supply and demand
the staff is going to have more disposable income this means that they are going to be buying more products such as luxury and expensive items,
this means more customers are going in Greggs and buying more products, and Greggs will need more products to be able to produce more
products, and this means the suppliers of Greggs are going to be able to supply more material to be able to produce more products, because the
affordability increases of the customers and they are going to be able to buy products that are expensive this means that they will be able to
increase the prices of the products. However, there are some negatives impacts of them, because everyone will need more raw materials and more
staff and they are going have difficulties in finding better staff and raw material, this means that the demand will be increased however it is going to
be difficult to supply to Greggs. This means that the organisations will be competing to get better staff and raw materials.
D. Explain how elasticity of demand would be affected during a boom and how this would impact your selected organisation.
When the economy is in boom there is going to be an inelastic demand, and the customers are going to be less prices sensitive, so they are going to
be affordable to pay the products that are expensive this means that the customers of Greggs are going to go to the competitors that sell expensive
products such as Costa.
The organisation will need more employees, so this means there is going to be an increase in productivity, however, it is going to be harder if the
organisation is going to offer less salary, because people are going to prefer to go for the higher wages rates.
If there is an increase in everything Greggs will have to pay more wages of the employees, this means everyone would like to get more wage. There
will be also an increase in taxes so people will have to pay more taxes, such as the employees of Greggs and pay back the taxes on the products
that Greggs sell.
Because Greggs is a brand itself the customers will want to buy more products that are branded and are famous, this means that there is going to
be competition between organisations of being the best organisations so that the customers will go more towards that organisation. Greggs could be
affected from this from the organisations that are going to be expensive such as Costa and they are going to choose the best organisation.
