Influences on Economic Choices

Definition of Influences

• As our economy is not perfect competition, and it is impossible for it to be so, there are numerous factors influencing economic choices we make.

• Perfect competition is a theoretical scenario where all consumers have access to the same products and information. Without any factors influencing their choices, consumers will always purchase the cheapest product.
• This means that in a perfect competition the most efficient seller will always succeed, due to having the lowest price.=

• In reality, a multitude of different factors influence our choices, such as the ones listed below:

• Wants and needs
• Income
• Marketing
• Familiarity
• Price
• Quality
• Environmental factors
• Wealth
• Culture
• Values