which key economic issue is influenced by consumers level of income? (1 Viewer)

[kkk579]

^^

 

[kkk579]

i was tossed up between what to product and how much to produce

i thought it was how much to produce at first but then changed it to what to produce cos i figured that firms wouldnt produce goods and services that ppl on low income wouldnt be able to purchase, for example they wouldnt be making something that requires alot of money to produce otherwise theyd have to charge more for it to make the same amount if profit

because what to produce always comes before how much to produce

 

[kkk579]

it can be a number of them but main one would prob be economic growth

the options were: 1. what to produce 2. how much to produce 3. how to distribute 4. some other one i dont rmbr but it wasnt anythng to do with economic growth

 

[kkk579]

oh ok ... (lets say there is a change in consumer preferences due to an increase in income), it's not 3, i'd probably go with 1. what to produce

oh okay nice, also for a q which was worth two marks, it was outline the law of supply.
i put the law of supply states that as the price of a product increases, the quantity supplied also increases as firms want to maximise their profits by selling more goods and services which will earn them more money. i also put a graph of the supply curve. would this only gain me one mark because i didnt say vice versa or while everything else is constant?