Economics Reviewer 3rd Quarter

A. Consumption

  • baseline of the economy

  • buying goods and services

Consumer

  • refers to a person who purchases and uses consumer products and services to satisfy his/her needs

B. Characteristics of a wise consumer

  1. Alert

  2. Budget-Conscious

  3. Reasonable

  4. Not affected by advertisements

  5. Analytical

  6. Looking for alternatives

  7. Avoid panic-buying

C. Factors that influences consumption

  1. Prices

  2. Advertisements

  3. Income

  4. Occasion

  5. Bandwagon effect

  6. Values

  7. Seasons

D. Rights of a consumer

  1. Basic needs

  2. Safety - Choking Hazards/Warning

  3. Information - Always read the fine print of the product

  4. Choose

  5. Representation - to express interests in making policies

  6. Redress - right to demand for compensation

    Inventory

    • Stocks that have been stored for a long time

  7. Healthy-environment

  8. Consumer Education - right to acquire the knowledge/ look for other sources of information

E. Consumer Responsibilities

  1. Critical Awareness

    • always check ingredients and expiry date

  2. Action

    • establishment → government assistance → Taking it on a legal level

  3. Social Concern

    • awareness of one’s decision to the society

  4. Environment Awareness

  5. Solidarity

    • refers to finding alternatives that has a lower price of a certain product you’re looking for.

F. Demand

  • refers to the quantity of goods and services that consumers are willing and able to buy at an alternative price given at a given period of time.

Determinants of Demand

  1. Population - number of people in a specific location

  2. Expectation - when a consumer expects trouble, he/she will buy products to sustain for the time being of the situation

  3. Income - refers to the capacity to buy goods and services

  4. Preference - Advertisements / Cultural Influences

  5. Occasion - Celebrating Milestones

  6. Change in the price of substitutes - affordable alternatives

  7. Change in the price of compliments- are goods and services that’s have greater utility when combined and used together