You have started to explore the relationship between demand and price. Business markets rely on examining the relationship between demand, price and supply.

Affordability: If something is expensive, people might buy less of it. For instance, if the price of a popular smartphone increases, demand might go down because not everyone can afford it.

Competition: Demand can reduce significantly if the competition reduces its prices for like products , quality and service. When there are many options, people might choose the cheaper one. If there are several pizza places in a neighbourhood, their prices could influence demand.

Availability of Substitutes: If a product has many alternatives, people might switch if the price goes up. Coffee and tea are substitutes, so if coffee prices increase, demand for tea might rise.

Level of Gross Domestic Product (GDP): The GDP is one of the most important indicators used by economists to calculate the state of the economy. The ONS (Office National Statistics) produces these figures and relies on quarterly data gathered from:

• Output- The value of goods and services produced from a sample of every type of business and sector.

• Expenditure- The value of all goods and services purchased by businesses, government and individuals including all exported sales.

• Income- The value of money generated primarily through wages and profits.

When the economy is doing well, people have more money to spend. If the GDP goes up, people might buy more luxury items like fancy electronics.

Needs and Aspirations of Consumers:  Consumers influence demand by their needs and aspirations. Our needs include basic requirements such as food warmth, water and safety. These are common to everyone. Consumers also have other and varying needs which are those products and services they are used to and believe they cannot or do not want to live without. These might include...

• mobile phones

• technology and multimedia

• entertainment 

• beauty treatments

• own transport

These examples increase demand on businesses and also influence price, which may go up as well as down.

We also have aspirations which might include:

latest trends in clothing

• technology improvements

• home improvements such as luxury kitchens and  bathrooms

• home or garden projects

• larger housing or improved location

• newer, faster or bigger transport

• holidays (more frequent and luxurious)

 If people really want something, they'll buy it even if the price is high. If a new video game becomes a must-have, its price might not matter much to its fans.

Availability of Raw Materials and Labour: If a business can't get the materials it needs, it can't produce. If a bakery can't find flour, it can't make bread. How might the following article on Increases to Trade Tariffs affect might affect businesses.

https://www.bbc.co.uk/news/articles/cj3j7z73yv2o

Logistics: If getting products to customers is hard, supply might be affected. A clothing company needs efficient transportation to distribute its products.

Ability to Produce Profitably: If making a product costs more than selling it, it's not worth it. If the cost of producing a toy is more than what people are willing to pay, the business might not make it.

Competition for Raw Materials: If many businesses need the same materials, it can drive prices up. If all car manufacturers want the same metal for their cars, the metal's price might rise.

Government Support: If the government helps a business, it can impact supply. If a country encourages solar energy by giving subsidies, solar panel production might increase.

Price Elasticity of Demand: It's like a measure of how sensitive people are to price changes. If people react a lot to price changes, demand is elastic.

Example: If the price of a chocolate bar doubles and people still buy the same amount, demand is inelastic. But if people buy much less chocolate when the price increases, demand is elastic.

In different types of markets, businesses make different pricing and production choices. In a competitive market, prices might be lower due to rivalry, while in a monopoly, the company might set high prices because it's the only one selling. 

If a competitor lowers prices, a business might do the same to stay competitive. If a rival offers a sale on laptops, another electronics store might follow suit.

Understanding these concepts helps businesses make smart decisions about what to produce, how much to produce, and at what price. It's like knowing the rules of the game to play it well.