Question

Respond to the following in a minimum of 175 words:

• How has the supply and demand of a specific product affected your/your family’s purchasing decisions?
• What variables most affect your decision to either buy or not buy a good or service?

Answer 1

Think of any good that was short in suppy in your area and structure around it.

I have given an example in my region, problems of your region may differ.

Have a read through my essay and develop around the same.

There was a recent shortfall of chicken meat in the market.

The supply of chicken was reduced and the price increased.

Chicken is a common dish in our diet and we were affected.

So we looked for alternate meat substitutes such as beef, fish , mutton pork etc.

Since the supply reduced, our purchasing decisions changed, we started consuming less meat per week than before since chicken and other meat were not perfect substitues.

We looked for chicken shops in other areas that might be cheap, however after factoring the cost of travel, it was the same

The variables that affected the most was price, since the price was increased , we decided not to buy chicken meat.

The distance from the shop to our house also affected the same.

Price and distance were two most important variables.