Vision 2030
JF-Expert Member
- Dec 10, 2017
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Purchasing power is an economic theory relating to an individual's or business's ability to buy goods or services in the economic market place. Purchasing power usually is measured by calculating how many items a consumer/mfanyakazi can buy with a fixed shillings amount. Government agencies and economists often track consumer purchasing power because consumer/mfanyakazi purchase make up a large part of a nation's overall economy. Several factors can influence consumer /mfanyakazi purchasing power.
1. SUPPLY &DEMANDS
Supply and demand is a basic economy theory relating to the amount of goods or services supplied by companies/individuals/institutions versus the demand for goods or services by consumers. Supply increases occur when companies/wakulima na wengine produce more consumer goods or services than are being purchased. An increase in supply often leads to a reduction in consumer prices.
Companies/wakulima/institutions lower prices to reduce unsold inventory and business costs relating to the production or manufacture of consumer products. lower consumer prices usually allow the purchase of more goods and services with fewer shillings
2.INFLATION
Is commonly defined as too many shillings chasing for too few goods. This phenomenon can relate to the natural growth of a force market society or a nation's MONETARY POLICIES. Inflation increases consumer prices over a period of time and reduces purchasing power .Consumer living in economies of high inflation must use more shillings to purchase a basic..I repeat a basic...I repeat once again a basic amount of goods. inflation also can reduce the amount of money consumers earn from saving money and generating passive income through various business or economic investments........to be continued....
1. SUPPLY &DEMANDS
Supply and demand is a basic economy theory relating to the amount of goods or services supplied by companies/individuals/institutions versus the demand for goods or services by consumers. Supply increases occur when companies/wakulima na wengine produce more consumer goods or services than are being purchased. An increase in supply often leads to a reduction in consumer prices.
Companies/wakulima/institutions lower prices to reduce unsold inventory and business costs relating to the production or manufacture of consumer products. lower consumer prices usually allow the purchase of more goods and services with fewer shillings
2.INFLATION
Is commonly defined as too many shillings chasing for too few goods. This phenomenon can relate to the natural growth of a force market society or a nation's MONETARY POLICIES. Inflation increases consumer prices over a period of time and reduces purchasing power .Consumer living in economies of high inflation must use more shillings to purchase a basic..I repeat a basic...I repeat once again a basic amount of goods. inflation also can reduce the amount of money consumers earn from saving money and generating passive income through various business or economic investments........to be continued....
