Impact of items purchased by people on economy.
Explanation of Solution
Effect on businesses when people make purchases is given below:
1. Pen:
When a pen is purchased, three businesses that benefitare:
- Plastic industry: it provides plastic to produce pen.
- Chemical industry: it provides ink.
- Pen industry: it produces and sells pen.
2. Biscuit:
When a biscuit is purchased, the three businesses that benefit are:
- Sugar industry: it provides sugar.
- Flour industry: it provides flour which is a main ingredient.
- Biscuitindustry: it produces and sells biscuits.
3. Movie ticket:
When people buy a movie ticket the following three businesses are benefited:
- Cinema hall owners: they provide the space and make arrangements.
- Movie making industry (like Hollywood): people from industry are the ones who make movies and earn money in return.
- Food industry: when people visit cinema hall they also buy some eatables like popcorn, chips, etc. in this way food industry is also benefited.
Introduction:
Every purchase made by people affect the economy when people make purchases they generate demandand provide income to the various economic agents.
Chapter 1 Solutions
Economics Today and Tomorrow, Student Edition
Additional Business Textbook Solutions
Principles of Accounting Volume 1
Financial Accounting (12th Edition) (What's New in Accounting)
Horngren's Accounting (11th Edition)
Principles of Management
Managerial Accounting (4th Edition)
Managerial Accounting (5th Edition)
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education