What might happen when consumers suddenly decide to stop buying products?

Question

I have this weird imagination. What if people started to stop buying products in the market? I am sure it will be affected so many things in the business world.

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Answer 1

If consumers all stopped buying things stores would shut down, because of lack of goods not selling. And the would go bankrupt. So when we all buy things it is a good thing, because we are helping the businesses survive.

Comments

Some people also claimed that we need to help the economy. It is not a good sign if a company declared bankruptcy. Many people will lose their jobs and it will be a big problem for them to survive in this world.

Answer 2

It's a fundamental economic principle that when supply exceeds demand for a good or service, prices fall. When demand exceeds supply, prices tend to rise. ... While the initial demand may be high, due to the company hyping and creating buzz for the car, most consumers are not willing to spend $200,000 for an auto.

Comments

I do agree with you. It is a principle that businessmen need to apply. Once the products cost an arm and a leg, the customers would not risk spending too much money on them.

Answer 3

I think everything happens in sequence. 

• One customer stops buying. 
• That customer makes another customer do the same. 
• And this chain starts. 
• And then the promoters and sales people find it hard to make sale. 
• And then company starts to get the pinch of lack of sales. 

And this eventually leads to the loss of the company. 

Comments

It is indeed the ripple effect of having such a business. I agree that this is a bad sign that can lead to declaring bankruptcy.

Answer 4

The demand for a good depends on several factors, such as price of the good, perceived quality, advertising, income, confidence of consumers and changes in taste and fashion. We can look at either an individual demand curve or the total demand in the economy.

Comments

Indeed, it depends on so many factors. If there is an increase in demand, then the supply needs to be increased. If the buyers are not buying anymore, then the company must conduct a feasibility study to determine what went wrong with the owner's business, either small or big.

Answer 5

Market demand may rise or fall as a result of changes in consumer wealth. For instance, less demand at every price indicates that the demand has fallen if there are fewer consumers in a market.

Answer 6

There could be a decrease in sales for the company due to less demand for the product. Additionally, the company could lose market share in the product category.

Answer 7

If people suddenly stop buying products from the market that means that persons selling those produce in the market will lose everything thing will go to waste and the seller will not gain any profit.