MARK 201 Chapter Notes - Chapter 3 part 2: Marketing Mix, Price Fixing, Oligopoly
Document Summary
Economy: income, expenditures, and resources that affect the cost of running a business and household. Concern at macro economical level is due to gdp, unemployment, price changes. Consumer spending which accounts for of u. s economic activity is affected by expectations of the future. A consumer"s ability to buy is related to income, which consists of gross, disposable, and discretionary components. Gross income: the total amount of money made in one year by a person, household, or family. Disposable income: the money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation. If taxes rise or fall faster than income, consumers have less or more disposable income. Dramatic changes in prices can lead to spending adjustments. During recessions, spending, debt, and the use of credit all decline. Discretionary income: the money that remains after paying for taxes and necessities (used for wants and luxury items)