Question

1.When you are shopping for clothing, explain how your purchasing behavior is influenced by the economic principles of supply, demand, factors of production, prices, and opportunity costs.

Answer 1

answer-

Purchasing behavior of my as consumer for clothing can be influenced-

Supply if Company has lack of supply of clothes i demanded then i would not purchase from that company and try to look other places.

Demand if i demand a cloth according to my need and i get that i instantly purchase that clothing product.

Factors of production include labor, money, idea, quality etc if company invest in these factors and make good quality clothing product the demand for that product increases and i would purchase.

Prices has great impact on purchasing because if there is cloth say jeans at high price and its competitor is giving the same at low price then i would take low price jeans.

Opportunity cost means the loss of other alternatives when one alternative is chosen.i can choose either quality or price when purchasing clothes. for example- I get two identical tshirt one from high price and good quality and other is same but low price and low quality then i would either choose first and lose other alternative and vice versa.This would affect my purchasing behavior.