Consumer affairs (price formation of goods)

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A little presentation on pricing (demand and supply) to whet your appetite for the topic.

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Consumer affairs (price formation of goods)

  1. 1. CONSUMER AFFAIRS Factors that Influence the Price of Goods and Services Presented by Mr. D. Gooden
  2. 2. Different countries govern differently…prices of goods are the same
  3. 3. Price Formation of Goods The price of goods and services in different countries is dependent of the type of market that exists. A market is a place where people (vendors) take their goods and sell it to people. It is a physical place where people buy and sell eg. May Pen Market A market can also be seen as any environment where trading takes place eg. over the internet, at a backyard sale or between two students on the school compound.
  4. 4. Price Formation of Goods
  5. 5. Price Formation of Goods The price of goods and services in different countries is also dependent on the demand and supply of the goods and services. What is demand? Demand refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price.
  6. 6. Price Formation of Goods The price of goods and services in different countries is also dependent on the demand and supply of the goods and services. What is supply? represents how much the market can offer. The quantity supplied refers to the amount of a certain good producers are willing to supply when receiving a certain price
  7. 7. Some of factors that affect the demand for goods and services <ul><li>Changes in consumers’ Income </li></ul><ul><li>Changes in the tastes/preferences of consumers for goods/services </li></ul><ul><li>Changes in the prices of related goods and services: (Substitutes and Complements) </li></ul><ul><li>Natural disasters (storms, hurricanes, earthquakes, tornadoes, floods etc) </li></ul>
  8. 8. Some of factors that affect the demand for goods and services <ul><li>Advertising or Commercial ads </li></ul><ul><li>Seasonality (Christmas, Easter, Valentines Day etc) </li></ul><ul><li>Changes in government fiscal policy (spending and taxation) and monetary policy (interest rate etc) </li></ul>
  9. 9. Some of factors that affect the supply for goods and services <ul><li>Changes in the Price of a good or service </li></ul><ul><li>The Costs of factor inputs of firms (labor, capital etc) </li></ul><ul><li>The # of business firms in an industry </li></ul><ul><li>Changes in Technology (or the State of the Art) of business firms </li></ul><ul><li>Changes in the Prices of related goods and services </li></ul>
  10. 10. Some of factors that affect the supply for goods and services <ul><li>Natural Disasters </li></ul><ul><li>Government fiscal and monetary policies </li></ul><ul><li>The rate of growth of the Population </li></ul><ul><li>Scientific Discoveries (medical, inventions, chemicals etc) </li></ul><ul><li>Changes in the Tastes/Preferences of consumers for goods/services </li></ul>
  11. 11. THE END

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