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Cosumer Expectations

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Chelsea Gyorfi

on 26 April 2010

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Transcript of Cosumer Expectations

Producer Expectations suppliers make current production decisions based on their expectations of future income
Income depends on the prices they can charge for their products
expectations they have of future changes in the prices of thier products can affect how much of their priduct they supply to the market now

Ex: Waterworld Budget was at 175 million but only engrossed 88 million 1995
Ex: Holiday Candy Producers know that people want to buy candy Ex: Silly Bandz
Cheaply made but sold
at higher pice and in high demand Ex: Blockbuster Spend money to keep it
running expecting to
have income but not
making enough
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