Economic Factors That Affect The Demand Of A Product Essay

DETERMINANTS OF SUPPLY CURVE 1. COST OF PRODUCTION: An increase in the cost of inputs of production such as sugar, caffeine and colors causes an increase in the cost of production. This means that an increase in cost will cause the supplier less willing to supply at a given rate. An increase in cost resulting from shortage of ingredients or disruption of supply is one of the common reasons why the suppliers cannot supply the product at a given price thus shifting the supply curve from S1 to S2.Adverse climatic fluctuations results in low productivity of agriculture which in turn affects Coca Cola.

The history of American colonies began when the Virginia Company established the first colony in the mouth of the James river in the 1600s. Then many other colonies began to form along the Atlantic coast. There were three groups: The New England Colonies, The Middle Colonies, and the Southern Colonies. Each of the group had their own way of living and had different social and economic life. They mostly practiced religion, farming, and trade. The main motivation was to generate profit for the mother country of England. The socioeconomic factors in North America from the early 1600s to the 1770s that lead to their ultimate rebellion against the mother country and their declaration of independence was enlightenment and great awakening, taxation without representation, and the chain of events during the mid-1700s including the Battle of Lexington and Concord and the Boston tea party.

Pete Sepp, communications director for the Virginian-based Taxpayers Union, says that “we feel that income taxes are among the most economically destructive as well as politically deceptive ways to raise revenue” (qtd. in Jeffs). What most Americans do not realize is that an income tax actually cripples the poor. Companies mark up prices because the businesses

A different issue that affected inequality in the economy was that people with power often would pay themselves large salaries over their employees. The new tax reform was also in favor of the rich because it helped reduced their taxes which did little good for the average American. In 1993 the tax code changed several inequities that were in the government tax structure in the 1980s. The rise in minimum wage improved the quality of living for the people who received a very low wage for working. This caused a decrease in inequality pay but not for income.

Once production slowed once more, prices for common goods went up. This

The term “regressive” describes the reality of a tax taking more of a poor person’s income than that of a wealthy person. Before 1913, economists

Next, the three crucial economic factors that affect the company include inflation, recession and currency. As Apple products are commonly viewed as luxury products, and with inflation and

are all the economic factors. The ability of people or purchasing power of Apple products is targeted from medium to high class. Economic factors effect Apple Company’s business process as Apple is recognized internationally. The products components that the company gets from foreign suppliers play an important role because of the exchange rates and currency differences.

Apple marketers must always be aware of the present and future economic developments. This is to ensure that the marketing plan can be done. Economic environment factors that affect consumer buying and spending and affect the wealth of an area include income distribution inflation, recession and spending patterns. The amount of individual or household income is refers by consumer income.

Exchange rate between different countries differs on their economy. 3. Social factors Social factor is related to growth of population. Increase in population growth creates demand in automobile industry and the sale of Mercedes Benz will increase.

• More appetite for different kinds of food, hunger for different choices (see Exhibit 8). Technological Factors • Technology is each time more frequent in their citizen lives. 66% of adults own a smartphone. • Technologic advances such as 4G have catapulted this market. 5.

Most of them in the UK and the US are using apple Co. products from iPod to the iPhone. 3. Factor Influence Apple’s Consumer Buying Behaviour 3.1 PSYCHOLOGICAL FACTORS 3.1.1 One of the major factors that influence consumer buyer behaviour is psychological factors. Psychological factors can be distribute into five categories, that is motivation, perception, learning ,beliefs and attitudes and this all can influence a person’s buying choices.

The reason is that consumer want , preferences, and usage rates are often associated with demographic variables.

The higher goods and service are imported than exported, the more

Hence, the resulting market failure encourages the government intervention through the price control mechanism although seemingly lead to welfare