Question

Can government policy affect consumer behaviour?

​

Answer 1

Explanation:

answer is attached as attachments

Answer 2

Yes, government policies can affect consumer behaviour directly.

• Consumer behaviour is the study of consumers and the effective method they use to choose, and properly dispose of commodities. It includes emotional, mental, and behavioural responses from customers.
• Government and business policies may influence the production and removal of items, which has a direct impact on customers.
• Import restrictions, cheap business taxes, minimal regulation, and easy commercial financing are all examples of government policies that benefit manufacturers.
• They may also benefit consumers by promoting open trade, cheap sales taxes, pro-consumer legislation, and easy credit.