HL Economics

Economics in Pictures

Looking at this economic transaction, numerous methods are used in order for the market to attract consumers and benefit in their income. Close to the entrance, more of the inelastic goods are apparent which may catch consumers, most likely at an elder age, to be bought into the market. Furthest from this entrance is the drinks and food section. This placement of the inelastic goods force consumers who desire more of these inelastic products, to walk through several aisles before reaching their desired good. By positioning the most demanded goods at the furthest end of the store, it would give an incentive for consumers to buy more goods then they have planned as they walk beside the different products.The set up of the cashier is another trap for consumers. Because the cashiers are placed at the mid section of the whole market, the consumers will have to work their way through to the cashiers, while encountering more products. Also, alongside the registers, there are small goods placed next to them, such as hot food items, small candy and goods that are bargained. This positioning of the goods is the last minute call for consumers to buy more products. Most likely, the products that are on sale are to gain more profit and to decrease the producers surplus.

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