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a higher level of demand fluctuation is the case where costumers become more sensitive to changes in prices and products and situations in the industry. a good example is the housing market in the US. before 2007, housing demand was resilient and kept increasing regardless of prices, income, quality,.... however, after the crash of 2007, home buyers were much more weary of any purchase and weighed their decisions on many factors.
in the second case, we started witnessing a higher level of demand fluctuation.
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What does higher interest rates in mortgage lead to?
Higher mortgage interest rates inherently reduces the public demand for mortgages since price level has an inverse relationship with demand. Ceteris paribus (all other things remaining equal) the interest rate will return to the rate at which the both the price level and quantity of mortgages taken will achieve maximum values.
Why is gas so much money?
because there is a very high demand for gas right now in time and the higher demand you have the higher the gas prices will be.
What of these is most likely to lead to an increase price of a company's stock?
Answer : Its profits increase. Explanation : When a company is more profitable, it's stock is in higher demand, and higher demand means a higher price.
What is investment fluctuation fund?
investment fluctuation fund may be created out of profit ,so that any loss due to decrease in value of investment can be met out of investment fluctuation fund.
What is market fluctuation?
Market fluctuation is the rise or fall in price of a security or the market in a short-period of time.
What is the cause of price fluctuation?
Like everything else, it is supply and demand. There are artificial stimulations to the market that require time to sort out. For example, the current high price of fuel oil, not only creates high production costs, but also a higher demand for feed corn supplies by the ethanal production industry.
What is rate fluctuation?
Exchange rate fluctuation is the change in value of one currency against another currency due to various economic factors. In simple sense, the value of one currency will be appreciated against another if the demand for that particular currency is higher. By John Pradeep & Rajeesh Kunnampuram
What happen when demand and supply are not equal?
When demand is higher than supply prices are going up, at some level customers don't want to buy and sales are going down. When supply is higher than demand prices are going down, at some level demand is again higher than supply and prices are going up.
What is exchange rate fluctuation?
Exchange rate fluctuation is the change in value of one currency against another currency due to various economic factors. In simple sense, the value of one currency will be appreciated against another if the demand for that particular currency is higher. By John Pradeep & Rajeesh Kunnampuram
What are some of the causes of fluctuation in the exchange rate?
The only things that causes of fluctuation in the exchange rate are the Supply and demand of the traders which are influenced by current financial events and speculation.
Using the AD-AS framework what is the impact on equilibrium price and output when there are increase in aggregate demand and aggregate supply simultaneously?
AD-AS represents aggregate demand curve (AD) and aggregate supply curve (AS). "In the aggregate demand-aggregate supply model, each point on the aggregate demand curve is an outcome of the IS-LM model for aggregate demand Y based on a particular price level. Starting from one point on the aggregate demand curve, at a particular price level and a quantity of aggregate demand implied by the IS-LM model for that price level, if one considers a higher potential price level, in the IS-LM model the real money supply M/P will be lower and hence the LM curve will be shifted higher, leading to lower aggregate demand; hence at the higher price level the level of aggregate demand is lower, so the aggregate demand curve is negatively sloped
How will consumers react to the incentive of a higher price of good or service?
The negative incentive will cause consumers to purchase less of a good or service if it is of lower quality
Which influence on spending deals with the motivation to purchase a product?
the price of the product and the willingness of the consumer to purchase the product impact the demand of the product by the consumer. lower the price, higher will be the demand and higher is the motivation level to buy the good.
How does supply and demand affect the price of a product?
the higher the demand the higher the price.the lower the demand the lower the price.
How do the changes of demand affect the price?
Higher demand, the higher the price goes. Remove the demand for something and then the price drops.
Which best describes one of the ways that demographics of an area affect the price of housing in the area?
An area with younger people will have a higher demand for rentals and a lower demand for buying
What is the main purpose of material management?
1. To gain economy in the purchase. 2. To satisfied the demand during period of replenishment. 3. To carry reserve stock to avoid stock out. 4. To istablized fluctuation in consumption. 5. To provide reasonable level of client services.
