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Year 7 economics and buisness (The 6 concepts (4 factors of production…
Year 7 economics and buisness
Pricing stratigies
Cost plus margin
Producers buy in bulk and sell the product lower then other companies because buying in bulk is cheaper so they can sell their product for less.
Premium pricing
A business establishes them self as a high quality brand and convince customers that there brand and product are better.
psychological pricing
psychological pricing are prices that are close to the nearest doller because consumers are more likely to be attracted to something that is $19.95 than something that is $20.
Penetration Pricing
A producer starting a new business may use penetration because you come in the market with low prices to get loyal customers and raise the price just a little.
Needs and wants
needs
Needs are things that we CAN'T live without.
Some examples of need are food, water, shelter and education.
Wants
Want are things that we CAN live without
some examples of wants are sports car, iPhone x and Tn's.
The 6 concepts
Allocation and markets
interdependance
Making choices
Specialisation and trade
Economic performance and living standards
Sarcity
4 factors of production
Fisheries
Labour
Forestry
Land
Work
Why do people earn more than others?
People may earn more than other because they have to work more hours and there work is significantly more difficult and they have more responsibility.
Income
Income is money that you earn from your job for working.
Types of work
Part time
works Less than 35 hours a week and is ongoing
Casual
No set hours and is usually paid more than part and full time workers
Full time
works More than 35 hours a week and is ongoing
Why we work
To earn an income
New skills
More experience
To help the company suceed
Make new friend and build relation ships with collegues
To help people
Support your family
Producers and Consumers
Producers
Producers make good and provide services.
agricultural producers
Industrial Producers
Producers are the people who provide goods and services to consumers for money
Consumers
Someone who buys good and services
Discount cusromers
Loyal Customers
Discount Consumers
Need based consumers
Environmentally friendly consumers
Socially responsible consumers
Consumers are the people who buy and use the producers goods and services