1. List one characteristic (shift factor) of demand for your specific good or service.
2. List one characteristic (shift factor) of supply for your specific good or service.
3. Describe how the market achieves equilibrium.

INFORMATION BELOW TO GO BY:

1) List the specific costs of starting your own business.

Starting a business would involve accounting costs which includes fixed costs and variable costs and starting a business would also involve opportunity costs.

Equipment expenditure - Cost incurred in purchase and setting up of required equipment.

Rent payment - Cost incurred when an office space is taken on rent.

Inventory expenditure - Cost incurred in building up of initial inventory.

Marketing costs - Cost incurred in marketing, advertisements.

Office furniture - Cost incurred in purchase and setting upoffice furniture.

Salaries - Cost incurred in payment of wages, salaries to employees.

Insurance costs - Cost incurred in paying insurance premiums.

Shipping costs - Cost incurredto transport the product from seller to buyer.

Website costs - Cost incurred to make and maintain the website.

Borrowing costs - Cost incurred in the form of interest payments when any borrowing is done.

Cost of leaving current job - Cost incurred in the form ofsacrifice of the earnings that I am able to make currently at the job.

2) Identify which costs are accounting costs and which costs are opportunity costs.

Accounting costs are out of hand expenses.

Following are the accounting costs:

Equipment expenditure, rent payment if office space is taken on rent, Inventory expenditure, Marketing costs, Office furniture, Salaries, Insurance costs, Shipping costs, Website costs & Borrowing costs

Opportunity cost is the sacrifice of benefit when the second-best alternative is not chosen.

a) Cost of leaving current job - Cost incurred in the form ofsacrifice of the earnings at the current job.

b) If I have my own space, which is already given out on rent and instead of renting a new space for my business, I set up my business in the space that I own, then I will have to sacrifice the rent income. Thus, if I decide to use my own space for setting up the business then rent income that is sacrificed becomes the opportunity cost.

c) If instead of borrowing money, I use my savings to set up the business then I will have to sacrifice the interest income that I used to receive from the bank. Thus, opportunity cost becomes interest income if my own savings are used.

3) List the name of your business?

Forever Paintings & Home Decor.