Demand and Supply Analysis
Demand and Supply Analysis
1. Demand indicates how much of a good consumers are willing and able to buy at each possible price during a given time period, other things constant.
2. The process to satisfy human wants/ needs/desires. * Want: having a strong desire for something * Need: lack of means of subsistence * Desire: an aspiration to acquire something
3. Demand: effective desire
4. Demand is that desire which backed by willingness and ability to buy a particular commodity.
5. Amount of the commodity which consumers are willing to buy per unit of time, at that price.
6. Things necessary for demand: * Time * Price of the commodity * Amount (or quantity) of the commodity consumers are willing to purchase at the price
Demand Analysis
Demand for a particular commodity implies:
1. Desire of the customer to buy the product;
2. The customers willingness to buy the product;
3. Sufficient purchasing power in the customers possession to buy the product.
The analysis of market demand enables business executives know:
1. The factors determining the size of consumer demand for their products;
2. The degree of responsiveness of demand to changes in its determinants;
3. The possibility of sales promotion through manipulation of prices;
4. Responsiveness of demand to advertisement expenditures; and,
5. Optimum levels of sales, inventories, and advertisement expenditures.
Demand & Supply
1. Supply and Demand analysis is in many ways the cornerstone of economics.
2. The relationship between demand and supply underlie the forces behind the allocation of resources. In market economy theories, demand and supply theory will allocate resources in the most efficient way possible.
Demand Curves and Schedules
1. Demand curves isolate the relationship between quantity demanded and the price of the product, while holding all other influences constant (in latin: ceteris paribus)
2. Demand Schedule: A table
1. Demand indicates how much of a good consumers are willing and able to buy at each possible price during a given time period, other things constant.
2. The process to satisfy human wants/ needs/desires. * Want: having a strong desire for something * Need: lack of means of subsistence * Desire: an aspiration to acquire something
3. Demand: effective desire
4. Demand is that desire which backed by willingness and ability to buy a particular commodity.
5. Amount of the commodity which consumers are willing to buy per unit of time, at that price.
6. Things necessary for demand: * Time * Price of the commodity * Amount (or quantity) of the commodity consumers are willing to purchase at the price
Demand Analysis
Demand for a particular commodity implies:
1. Desire of the customer to buy the product;
2. The customers willingness to buy the product;
3. Sufficient purchasing power in the customers possession to buy the product.
The analysis of market demand enables business executives know:
1. The factors determining the size of consumer demand for their products;
2. The degree of responsiveness of demand to changes in its determinants;
3. The possibility of sales promotion through manipulation of prices;
4. Responsiveness of demand to advertisement expenditures; and,
5. Optimum levels of sales, inventories, and advertisement expenditures.
Demand & Supply
1. Supply and Demand analysis is in many ways the cornerstone of economics.
2. The relationship between demand and supply underlie the forces behind the allocation of resources. In market economy theories, demand and supply theory will allocate resources in the most efficient way possible.
Demand Curves and Schedules
1. Demand curves isolate the relationship between quantity demanded and the price of the product, while holding all other influences constant (in latin: ceteris paribus)
2. Demand Schedule: A table