- Identification of Objective
- Nature of Product and Market
- Determinants of Demand
- Analysis of Factors
- Choice of Method
- Testing Accuracy
What happens when demand increases
Demand Increase: price increases, quantity increases. Demand Decrease: price decreases, quantity decreases.
What are the 4 basic laws of supply and demand
1) If the supply increases and demand stays the same, the price will go down.
2) If the supply decreases and demand stays the same, the price will go up.
3) If the supply stays the same and demand increases, the price will go up.
4) If the supply stays the same and demand decreases, the price will go down.
What are the 12 determinants of demand?
- 1] Price of the Product
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- 2] Income of the Consumers
- 3] Prices of related goods or services
- 4] Consumer Expectations
- 5] Number of Buyers in the Market
Which comes first supply or demand
Demand comes first and it’s followed by the corresponding supplies.
What are the 10 determinants of demand?
- Levels of income
- Population
- End market indicators
- Availability and price of substitute goods
- Tastes and preferences
What are the 7 determinants of demand?
- Price of product
- Tastes and preferences
- Consumer’s income
- Availability of substitutes
- Number of consumers in the market
- Consumer’s expectations
- Elasticity vs
What factors cause decrease in demand
Due to the decrease in income of the consumer, the purchasing power of the consumer will also decrease.
So the demand for the product in the market will also decrease. Resultantly demand will change even if the price and supply of the product remain the same.
This is called a decrease in demand.
What is the function of production
production function, in economics, equation that expresses the relationship between the quantities of productive factors (such as labour and capital) used and the amount of product obtained.
How is price elasticity measured
Price elasticity measures the responsiveness of the quantity demanded or supplied of a good to a change in its price.
It is computed as the percentage change in quantity demanded—or supplied—divided by the percentage change in price.
What are the 5 demand determinants?
- Income
- Price
- Expectations, tastes, and preferences
- Customer base
- Economic conditions
What are the four factors that affect pricing?
- Costs and Expenses
- Supply and Demand
- Consumer Perceptions
- Competition
What are the 5 factors of supply?
- a
- b
- c
- d
- e
What is equilibrium price
An equilibrium price is a balance of demand and supply factors. There is a tendency for prices to return to this equilibrium unless some characteristics of demand or supply change.
Changes in the equilibrium price occur when either demand or supply, or both, shift or move.
What are the 5 types of elasticity of supply
5 Types of Elasticity of Supply Price elasticity of supply is of 5 types; perfectly elastic, more than unit elastic, unit elastic supply, less than unit elastic, and perfectly inelastic.
Which factors affect supply
Factors affecting supply There are many factors affecting the supply of a commodity in the market including input costs, price of the commodity, the state of technology at a given time, taxation, prices of other goods, objective of the seller, number of firms selling the same commodity among others.
What are the types of supply
There are five types of supply—market supply, short-term supply, long-term supply, joint supply, and composite supply.
What are the 4 determinants of supply?
- Price of the Commodity
- Firm Goals
- Price of Inputs or Factors
- Technology
- Government Policy
- Expectations
- Prices of other Commodities
- Number of Firms
What are the 5 demand shifters
Although different goods and services will have different demand shifters, the demand shifters are likely to include (1) consumer preferences, (2) the prices of related goods and services, (3) income, (4) demographic characteristics, and (5) buyer expectations.
What are the 10 determinants of supply?
- Price
- The number of sellers in the market
- The price of resources used to produce the product
- Tax rates and subsidies
- Improvements in technology and automation
- Expectations of the suppliers
- The price of related products
- The price of joint products made in the same process
What are the 7 determinants of supply?
- #1 – Price Of The Product Or Service
- #2 – Price Of Other Related Items
- #3 – Price Of Production’s Elements Or Factors Of Production
- #4 – Technology Intervention
- #5 – Administrative Policy
- #6 – Expectations/Speculations Of Price
- #7 – Other Elements
What are the 7 steps in forecasting?
- Determine what the forecast is for
- Select the items for the forecast
- Select the time horizon
- Select the forecast model type
- Gather data to be input into the model
- Make the forecast
- Verify and implement the results
What are the 4 types of elasticity
Four types of elasticity are demand elasticity, income elasticity, cross elasticity, and price elasticity.
References
https://www.investopedia.com/terms/l/lawofsupply.asp
https://www.economicshelp.org/microessays/equilibrium/demand/
https://www.fao.org/3/w4388e/w4388e0t.htm
