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Let's think about demand factors for a moment. demand (i.e., a relationship depicting the quantities of output demanded at alternative prices during a given time period) is conditioned by the number of buyers in the market, consumer incomes, prices of complementary and substitute goods, and consumer expectations about the future, among other things. It is important for you to establish what impact on demand changes in these determinants of demand will engender--- doing the textbook problems will help in this regard.

It is also important for you to distinguish between a "change in demand" (or, shift in demand) versus a "change in the quantity demanded" (or, movement along a given demand).

After thinking all of this through, try to think about what influence you, as a business person, might have in impacting demand in desired directions. For ex, what are some of the things that you could do to increase demand? (As it can be presumed that most businesses would want to do--it is hard to think of a context whereby a business would want to decrease the demand for its output--although there are cases when this might be appropriate.) Would it cost you anything to increase demand? What would be some of the obstacles?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M960935

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