Consumer buying strategies - PowerPoint PPT Presentation

Chapter 3 Your Purchasing Power Page 76

Chapter 3 Your Purchasing Power Page 76. Ch. 3 OBJECTIVES. Explain inflation and how it is measured Understand types of inflation and how they affect consumers Describe methods of setting prices in a market economy Explain consumer’s buying strategies and how they affect demand and prices.

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Chapter 3 Your Purchasing Power

Chapter 3 Your Purchasing Power. How Are Prices Set in a Market Economy?. Cost-recovery pricing is used to recover R&amp;D costs. Cost-plus pricing is calculated using production costs plus a markup. Value-based pricing is based on what consumers are willing to pay.

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