0
Why might a business fail even though the market demand for its type of product still exists?
Wiki User
∙ 12y ago
Several reasons:
Because an item, let's say a iPod, is cheaper at Walmart than Best Buy. So people will buy the product elsewhere for a better price. Also if the business spends more money than its taking in then it goes into debt. Right now money is not being circulated around in a poor economy so your company could fail because of lack of customers.
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
When a product is in demand what happens to the demand curve?
the market demand for the product. undefined. more inelastic than the market demand for the product. more elastic than the market demand for the product
What is the current demand in target market for business plan?
How many people would buy the product/service your business offers
What is product trial?
When a business begins to sell its product or services for a short time in a certain section of the market to see if there is a demand for the certain product or service.
Change in market price?
Changes in the market price is determined by demand of a product. If consumers demand the product, then the price will increase.
Example of market equilibrium?
Market equilibrium is when the demand of the product and the supply of the product is equal. If either demand or supply changes, then the equilibrium adjusts.
Explain why the law of demand can apply only in a free market?
Because the free market is the entity that in itself dictates the law of supply and demand. If the purchasing public has a high demand for a product, then more of that product is produced. Conversely, if there is only a low demand for a product, less of that product is produced.
How Market is made up off in Economics?
Market is made up of consumers where the element of product/service demand occurs. When the demand is generated suppliers have to fulfill the demand of the customers through the supply of product/service. In short demand and supply makes the market.
Example of factor market?
An example of factor market is the automobile market. This is a market that exists as a result of demand for something that consumers use.
What does the market demand curve show?
It shows the demand for the product in relation to the price
Why is it important to analyze the marketplace when creating a new business?
The demand and need for the product you are going to market depends on how good is your analysis of the market trends about your product. If you do not research thoroughly your business may fail and you will lose lot of money. On the other hand if your research finds there is lot of need for your products then your business will be successful
What factors affect pricing when determining a new selling price?
· The cost of production · The market demand for the product · The desired markup by the business owner
Impact of macro environment in a business organisation?
The macro micro and market environments have impact upon a businesses operating success in many ways. Most business prices are set by the laws of supply and demand. Both the international demand and the local demand for a product or service will effect the business.
