refers to the quantity that sellers are willing to sell

refers to the quantity of a product or service that consumers are willing and able to purchase

high demand + low supply

low demand + high supply

measures the responsiveness of the quantity demanded of a product to changes in it's price. It calculated as the percentage change in quantity demanded divided by the percentage change in price.

the price elasticity of demand can be categorized into three broad categories.

formula of Price elasticity of demand

formula of price elasticity of supply

a measure of how the quantity supplied of a good or service changes

it encompass psychological, emotional, and cognitive elements that influence decision-making these factors often deviate from the rational economic model of decision-making and can lead to biases and deviations from purely utility maximizing choices

refers to the satisfaction or benefit that individuals derive from consuming or processing goods and services

it's a fundamental concept in economics and often presented as a numerical value, allowing economics to make predictions and analyze consumer choices.

social factors such as peer pressure, family influences, and cultural norms can significantly affect consumer choices

can influence consumer decision, positive emotions related to a purchase can sway choices - the way choices are presented or framed can also impact decisions.

consumers may use mental shortcut and fall victim to cognitive biases that can lead to deviations from rational choices

this economics introduce the idea that consumers don't always act in a purely rational or utility.

the additional satisfaction gained from consuming one more unit of a good or service

this theory assures that consumers make choices to maximize their overall satisfaction or well-being represented as utility.

best described as the final purchase of goods and services by individuals. -the purchase of a new pair of shoes, a hamburger at the fast food restaurant or service, like getting your house cleaned. -the using up of a resource -the use of goods, product or services. It is the sole purpose behind manufacturing.

dynamics is derived from a Geek word meaning ??

a study of forces which determine consumer reactions or responses to their economic, social, and cultural environment.

the social process by which people interact face to face in small groups is called " " and relates to the study of the forces operating within a group.

in dynamics, why prices can change?

all sellers aim at changing consumer attitudes to products and brands in order to capture a high degree of sales. They can achieve this only by understand the ". ". for which s number of strategies are use.

5 strategies

changing the consumers attitude towards product or brand may be achieved by making new needs prominent

the more global the association, the greater is the dynamism of the consumer towards it.

marketers usually exploit the past purchase dissonance of consumers for promoting new products and brands

consumers generally tend to develop their attitudes rationally before they act in a market situation

to promote new products and services, marketers use the ability of reference group to change consumer attitudes and behavior and encourage conformity, in spite of established beliefs of consumers about competing brands.

factors responsible for attitudinal change

a mathematical representation of the satisfaction that a consumer derives from consuming a particular combination of goods and services.

It represents the preferences of an individual consumer.

usually expressed in terms of the quantity or level of consumption of the different goods and services in question and the level of satisfaction or utility derived from each level of consumption.

it is a consumers desires for a particular product or service.

it is the satisfaction a consumer receives from a good or service

the amount of money a consumer can spend on a product or service is combined with the utility function to determine the demand function

this expresses the impact of increased purchasing power on consumption.

it is how consumption is impacted by changing relative prices

it is the resulting change in demand for a good and service caused by an increase or service decrease in a consumers purchasing power or real income

it occurs when consumers replace one product with another due to price changes and personal finance.

it occurs when consumer react to an increase in a good's price by consuming less of that good and more of other goods

it happens when a person changes his or her consumption of goods and service as a result of a change in real income