BFE - Business Finance & Economics Overview

Business Finance & Economics 

Introduction

Entrepreneurship is on the rise! People everywhere are opening their own businesses or start-ups. There are many perks in being your own boss, but it comes with a lot of responsibility as well. In this module, you’ll discover how to model and interpret supply and demand to figure out the best price to set for your product or service. You’ll also take a look at expenses and revenue so that you are able to interpret the sales of a business to determine how to reach the maximum profit. All of these concepts are important as a business owner or just as a consumer!

Lesson Preview

In this module, we will study the following topics:

Supply and Demand: Learn how to interpret the supply and demand of a business.

Linear and Exponential Regression: Take a look at how data can provide a trend that you can use to predict future sales! 

Expenses, Revenue, & Profit: Discover how businesses make sure they are reaching their maximum profit. 

Key Terms

The following key terms will help you understand the content in this module.

  • Demand - The quantity that consumers (as a whole) want.
  • Equilibrium - Where the functions of supply (what is available to be sold) and demand (the quantity that consumers want to buy) intersect.
  • Line of best fit - A line that approximates the points on a scatterplot which can be used to show a trend and make predications; also called a linear regression or least squares line.
  • Linear Regression Line - A line that approximates the points on a scatter plot which can be used to show a trend and make predications; also called a line of best fit or least squares line.
  • Maximum Profit - The greatest difference between revenue and expense.
  • Nonlinear Function - A function that has a graph that is not a straight line.
  • Parabola - The shape of the graph of a quadratic function.
  • Profit - The positive difference obtained when expenses are subtracted from revenue.
  • Revenue - The income a business receives from selling a product.
  • Scatterplot - A graph that shows the relationship of bivariate data using points on the coordinate grid.
  • Supply - The quantity of an item available to be sold.

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