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Explain two market forces that will impact the financial plan of this company Explain two market forces that will impact the financial plan of this

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Explain two market forces that will impact the financial plan of this company

image text in transcribed Explain two market forces that will impact the financial plan of this company Below is an outline of how the market forces will impact on the financial plan of this company can you please expand. Supply, demand and Price Government - Fiscal and Monetary policies I. First Market Force that will impact the financial plan: A. Supply 1 It is important for suppliers to know how much products they are able to supply to buyers and at what prices. B. Demand 1 It is crucial for suppliers to find the right price that will achieve as much profit as possible without causing demand to reduce 1. The ultimate goal of a business is to make profit therefore it is vital that supply and demand be closely monitored in order to stay competitive in the market C. Price 1 II. Price will change as supply or demand changes. Therefore if an item is in demand and supply begins to reduce, prices will increase. If supply exceeds demand then prices will fall Second Market Force that will impact the financial plan A. Government 1 Monetary Policy - When government and Federal Reserve increase or decrease interest rates they are able to effectively reduce or speed up growth within the economy 2. Fiscal Policy - Whenever the government increase or contracts its spending they are able to ease unemployment and/or stabilize prices. They can also alter interest and the amount of dollars available on the open market. The government manages the investments that flow in and out of the country

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