New Chapter is an award winning traditional bookshop located in Tinahaly, Co Wicklow - Junior Cycle Business Studies - Question 16 - 2019
Question 16
New Chapter is an award winning traditional bookshop located in Tinahaly, Co Wicklow. The demand and supply curves for one of its books 'The Great Irish Weather Book... show full transcript
Worked Solution & Example Answer:New Chapter is an award winning traditional bookshop located in Tinahaly, Co Wicklow - Junior Cycle Business Studies - Question 16 - 2019
Step 1
Indicate the quantity supplied of 'The Great Irish Weather Book' at €20.
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Answer
From the supply curve, at the price of €20, the quantity supplied of 'The Great Irish Weather Book' is 80.
Step 2
Indicate the quantity demanded of 'The Great Irish Weather Book' at €8.
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According to the demand curve, at the price of €8, the quantity demanded of 'The Great Irish Weather Book' is 100.
Step 3
Indicate the equilibrium price of 'The Great Irish Weather Book'.
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The equilibrium price for 'The Great Irish Weather Book' is €16, where the supply and demand curves intersect.
Step 4
What impact would the following have on the demand for books in New Chapter? Place a tick (✓) in the correct box.
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A reduction in the price of books - Increased demand for books in New Chapter ✓;
An increase in taxes (VAT) - Decreased demand for books in New Chapter ✓;
Roll out of broadband to all areas in Wicklow - Increased demand for books in New Chapter ✓;
An Eason's store opening in the town - Decreased demand for books in New Chapter ✓.
Step 5
Illustrate how the business could use technology to its advantage.
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E-mail: Helps in the speed of communication to customers, enhancing customer service.
Website: The business can create a website to support sales online, showcasing available books and promotions.
Social media: Utilizing platforms to advertise and engage with customers, driving more traffic to the shop.
EPOS/ETPOS: Implementing electronic point of sale systems to streamline payment processing.
EDI: Using electronic data interchange for efficient invoicing and ordering processes.
E-readers: Providing customers with different methods of reading books, such as digital formats.
Step 6
Outline two possible costs for New Chapter associated with investing in ICT.
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Physical Hardware costs: Purchasing new computers and devices.
Training: Costs associated with training staff in ICT procedures to ensure effective use of new technologies.
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