Business with the Norris
Dealing with Demand.
Two different types of Demand, Elastic and Inelastic. Elastic is where a very small change in price will drastically increase demand, and Inelastic where a large change in price increases Demand.
In opposition, Supply does the opposite. (See Fig. Below)
Taxes Often cause both deflationary and inflationary pressure at the same time, it causes people to have less disposable income which causes a reduction in demand but also causes a demand for pay increases. This means the cost of employment rises, which often leads to an extent of employment loss. Which increases the amount of benefits being given out, meaning the government needs more money. Taxes up?
This looks like a viscious circle but it isn't, Taxes only go up by very minute amounts, and there is always slack in the system to cope with it. It is also impacted more/less dependant on what taxes are raised.
Interest Rates can be used to counteract inflation, see fig. below.
We did an excersize on budgeting, working out how much money we spend a year, so that we can work out exactly how much money we need to live how we do now (Not that I would want to live how I do now super uncomfortable)
Basics of Cost and Price
It's important to work out your costs, so that you can charge appropriately.
The more the better for you, to an extent, if you charge too much your clients may think that your work isn't worth the charge and go elsewhere, losing you business.
Be a manager, don't just design, create networks of skilled people you can provide work for and can provide work for you, get commisions on this, manage and control the project. Be smart! Not a mouse.
Two different types of Demand, Elastic and Inelastic. Elastic is where a very small change in price will drastically increase demand, and Inelastic where a large change in price increases Demand.
In opposition, Supply does the opposite. (See Fig. Below)
Taxes Often cause both deflationary and inflationary pressure at the same time, it causes people to have less disposable income which causes a reduction in demand but also causes a demand for pay increases. This means the cost of employment rises, which often leads to an extent of employment loss. Which increases the amount of benefits being given out, meaning the government needs more money. Taxes up?
This looks like a viscious circle but it isn't, Taxes only go up by very minute amounts, and there is always slack in the system to cope with it. It is also impacted more/less dependant on what taxes are raised.
Interest Rates can be used to counteract inflation, see fig. below.
We did an excersize on budgeting, working out how much money we spend a year, so that we can work out exactly how much money we need to live how we do now (Not that I would want to live how I do now super uncomfortable)
Basics of Cost and Price
It's important to work out your costs, so that you can charge appropriately.
The more the better for you, to an extent, if you charge too much your clients may think that your work isn't worth the charge and go elsewhere, losing you business.
Be a manager, don't just design, create networks of skilled people you can provide work for and can provide work for you, get commisions on this, manage and control the project. Be smart! Not a mouse.
