Purchase power

Introduction

Purchasing Power means the total amount of money used to purchase goods during a certain period of time. Since purchasing power refers to the purchase of goods, everything does not pass the currency settlement and currency expenditures used to purchase goods and services, such as returning to borrowing, pay taxes, party fees, trade unions, etc., are not social Commodity purchase power range.

Forming

Purchase power is formed through the distribution and redistribution of social products and national income, and social purchasing power is from various economic components of employee wages, other occupations workers. Labor income, residents from fiscal income (such as subsidies, relief, rewards, etc.), banks and credit units of agricultural loans, pre-procurement deposits, other income of residents, and social group purchase consumer goods.

Chinese social purchasing power is mainly composed of three parts: residents buy consumer goods money spending, social group purchasing power, and farmers buy agricultural production materials. Another meaning means that the unit currency can buy the quantity of goods or services, that is, currency purchasing power. It is determined in the value of the currency itself, the value of the goods or the high labor cost. The size of the purchasing power depends on the development of social production and the distribution of national income. Social purchasing power has continuously improved the growth of social production, and the changes in the accumulation and consumption ratio in national income also have a direct impact on purchasing power.

Case

Purchase power is usually very effective in the following cases:

1, very few purchases.

2, the buyer has adequate information for immediately commercially available competitive products.

3, the cost of product conversion is very low.

4, the company can use the backward integration to change the product to its own production.

5, the product has a considerable weight for the cost of the purchaser.

6, the seller is competing in cost.

7, the seller is poor profit.

Analysis

Social commodity purchasing power is within a certain period of time, the whole society is used in the retail market to purchase goods in currency payment capabilities, indicating the demand for social commodities. Social commodity purchasing power mainly uses four basic indicators.

1, the purchasing power of this issue has been implemented. Refers to the amount of money paid by the residents in the retail market.

2, balance merchandise purchasing power. Refers to the purchasing power of the residents, generally manifested as cash and savings deposits in the hands of the residents. Specifically divide two types of purchasing power and time at the end of the time.

3, the purchasing power formed in this issue. Refers to the residents' currency income, which can be used to buy the part of the money. It is generally obtained by using the income of the residents in this period.

4, all commercial purchases in this issue. Indicates the ability to purchase the most possible purchase of goods in this issue.