Consumers in the Market Economy (HSC SSCE Economics): Flashcards

Satisfaction/well-being from consuming goods and services

Demand of each consumer for a particular good/service

Rising house prices make homeowners feel wealthier, boosting spending

1.5% increase in consumption (long term)

Goods that replace each other (e.g., butter/margarine, tea/coffee)

Demand for the other substitute increases

Goods used together (e.g., iPhones/cases, cars/petrol)

Demand for both goods increases

Necessities low sensitivity; luxuries high sensitivity

Builds brand loyalty, reducing price sensitivity