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Consumers and Business - Coggle Diagram
Consumers and Business
terms and definitions
consumer sovereignty
consumers decide pattern of production
economic questions
what to produce
how much to produce
how to produce
for whom to produce
spending and saving
factors influencing..
income levels
future income expectations
cultural factors
confidence and future expectations
life stage and age
government policies
avaliability of credit (banks willing to lend more)
influencing consumer choice
consumer taste and prefereces
level of income
price of sub and comp goods
advertising
price of the good/ service
sources of consumer income
factors of production
wages from labour
rent from land
interest from capital
profit from entreprenurial skills
social welfare
goals and functions of businesses (GAMPS)
technologys effect on functioning
production methods
prices
checking overseas prices easy
employment
output and profits
tech allows to keep up with trends, customise, bettwer quality
types of products
globalisation
global market
environmental sustainability
maxamise profit
meet shareholder expecations
increase market share
maxamise growth
satisficing behaviour
economies of scale
economies of scale
increase in production = cheaper production
ie buying in bulk,
diseconomies
increase in production = more expensive production
sharing economy
businesses and consumers share access of goods
e.g. uber and airbnb
business operations
investment, technology snd ethical deciions
more effieicnet
more products
immediately check prices
replace workers -
globalisation
environment sustainability
productivity
quanitity that can be produced with a given amount of inputs