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12 Cards in this Set
- Front
- Back
Consumer income |
The more income someone earns, the more often they will pay for a good or service. |
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Number of consumers |
The more consumers there are at the moment, the more market demand increases, and the less there is the more market demand decreases |
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Taste and preference |
The more consumers want a good or service causes the increase in demand to increase because of the fact that they need more to keep consumers happy |
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Consumer expectations |
Perceived-value customers seek from the purchase of a good or service. See also customer needs and customers requirements |
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Price of substitute goods |
Different goods that at least partly satisfy the same needs of customers and therefor, can be used to replace one another |
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Price of complimentary good |
Material or good whose use is interrelated with the use of an associated or paired good such that a demand for one generates demand for thebother |
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Cost of inputs |
Profit is the key to the process. Lower production costs increase profits. A decrease in production causes an increase in supply |
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Number or production |
Number of producers in a market. When producers think profit will be made they enter a market. The ppa was example of this situation |
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Conditions due to natural disasters/ international events |
Hurricanes, floods, and wild fires can cause a decrease in supplies |
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Technology |
Technological advances can reduce the amount of labor needed to produce a good. Thereby, lowering costs and increasing productivity |
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Producer expectation |
Producers often make supply decisions based on the expectation that prices will rise or fail |
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Government policy |
Governments can directly affect supply in 2 ways, one offering producers to subside a cash payment at helping producers to continue to operate. It also uses excise takes to reduce the supple certain goods |