Economic Integrated Assignment

Factor Of Demand

Price

Inverse (negative) relationship between the price of a product and the amount of that product consumers are willing and able to buy. Consumer can buy more things in lower price rather then less product in higher price. Example Dutch lady milk is cheaper then farmhouse milk so consumer will prefer to buy Dutch lady milk.

Price of related goods 

Price of related goods affect the demand in market. Smart consumer will be more concern about the price of company’s product. For example, if price of giant’s product increase consumer will choose to buy Tesco product as substitute.

 

The number of consumer in the market 

The number of consumer in the market has direct impact on the demand. For example, Tesco located near a Taylor lakeside university have more demand and thus higher sales during beginning semester. Demand for Tesco product decrease during summer holiday, because there are less students taking class.   

The consumer income 

Effect that income has on the amount of a product that consumers are willing and able to buy depends on the type of good we're talking about. Most goods, there is a positive (direct) relationship between a consumer's income and the amount of the good that one is willing and able to buy. Example: when the income low people will prefer to buy ground beef and when income rise consumer will prefer better beef. 

The consumer expectation 

Expectations for the future can also affect how much of a of a product one is willing and able to buy. Example if you expect the price of gasoline to go up tomorrow, you may fill up your car with gas now



 

 Factor Of Demand Of Sustaining green environment

Consumer can go for online Tesco purchase for lower price and can consume fresher product, customer can pay by cash, debit card and credit card. Consumer can no need drive to Tesco to buy things and can save petrol. By saving petrol also reduce produce carbon dioxide to the environment. Other than that while consumer can enjoy point and can change in to cash to consumer buying in Tesco.

Now our environment getting worse and there are pollution and global warming. As a mankind in this world we be more responsibility for our future. We must protect our future generation and mother nature. We have no other place to stay there is only one earth.
 
Consuming saving energy product like LED TV because it consume less energy then other TV like LCD and Plasma. When we buy any electronic we look for energy consummation index that can can tell us that this electrical consume how many electricity, so when buy any electricity we can choose the lowest electric consuming.


Most all household have bulb and bulb consume the energy a lot. Some consumer did not notice that bulb consume a lot of energy when only the electricity bill come to your house. Then consumer start to think these few what do i on until the electricity bill charge so high. Now days the bulb box outside got notice to consumer that this bulb consume how many energy by rating A,B,C,D,E,F. A is the most saving electricity and F is the most consume energy

The state government want to make our country more greener and reduce pollution, our state government enforce that every Saturday will be no plastic bag. Consumer that want plastic bag will charge 20sen each. For that consumer will start to buy and use recycle bag so to avoid pay extra plastic bag fee. Some supermarket will provide some carton box and newspaper for consumer to wrap some fragile things or some product is heavy or big to fit into their recycle bag.

This survey are conduct by 20 customer at tesco

Price of its goods

From the pie chat below orange area we can see that if the tesco goods price increase 60% of the consumer will not continue buying goods at tesco. This will related the demand of consumer buying decrease. Only 40% consumer only will continue buy at tesco because there are staying nearby in this area. conclude that tesco price increase will reduce consumer come and buy goods, it make big different.   

Price of other goods elasticity

As we can see that from the pie chat is inelastic, the orange part show that 70% of the consumer will go to another hypermarket because their price is cheaper then tesco. Demand of consumer are reduce if another hypermarket reduce the price. In blue part only 30% of the consumer will continue buy at tesco because their housing area does not have other hypermarket. As this symptoms continue like this will tesco must do some more promotion to take back their customer.

Above the pie chat show that 80% in blue of the consumer will still buy goods in tesco although their income increase, because their quality of goods and service does not as bad as others. The demand will be increase because have more consumer.