0
How do market economies typically respond to high consumer demand for a product?
Wiki User
∙ 9y ago
Market economies respond by increasing the costs of goods that are highly demanded. They also increase production for the items.
Wiki User
∙ 9y ago
Add your answer:
Earn +20 pts
What are the four economic questions?
-What should the economy produce? Market economies use price to answer this question. For example, Product X at a very high price may not sell, thus producers may stop making the product. -How should goods/services be produced? Producers combine resources (consumers sell factors of production) to make products they can sell. Price of factors of production influence producer decisions to make or not to make a product -Who should receive the goods/services produced? Incomes limit choices and decisions of consumers as they respond to price in the marketplace. Consumers earn incomes based on their contributions (factors of production) to production of goods/services. -How should the economy provide for growth? Producers increase the supply of goods and services in response to price in the marketplace. Consumers earn increased incomes as they respond (offer their labor or capital) to the price of factors of production.
How does a command economy respond to consumer demand?
Command economy, due to the imperfect market it always creats, it shall always supply economic goods(scarcity) in the market to alow high demand, hence monopoly of the market.
How does pricing affect a small firm's image?
Pricing are mainly important in nowday compare the past as consumer now are more resourcefull and educated. Consumer will not easily tolerate to purchase an item with a higher price when they can get in somewhere nearby unless it is distinctive. When a small firm pricing their products or services, the market will get the image of positioning of the company whether it is high, low and as per market price. Furthermore, the customer will also determine whether the quality of the products or services worth the price as set. Once the consumer had the info or experience of the products or services, the consumer will judge the company as what it is and at last it will be the image and positioning in the consumer mind. There will have 3 basic image of the company in consumer mind. When the consumer judge the price and quality is equal, the consumer may seen the company as a normal company plus honest in pricing and as an another option when they need or want the product and services. When the consumer judge the price is higher than quality, the consumer will seen the company as making more than it should, greedy and some negative image according the difference. In other way, the consumer will respond to the company and giving a second chance if the company do show the honesty and sincere in business. When the consumer enjoy a great satisfaction with lower price compare to the quality, the consumer will happily tell their friend regards the company products and services. Therefore, the word of mouth effect will start growing from the customer and bring positive business grow to the company image and their business sales. At last, pricing is always another picture and outlook of the company. When a consumer look on a price tag, they may start imagine the company image and unconsciously building the company positioning in their mind. Therefore, in the future when the consumer think of a need or want of a products or services, they will fastly run through within second whether to choose or to consider the company or the brand to purchase. If the company had wrongly price their products, they will fail in building their positining and image to the target market.
How does the price system respond to surpluses and shortages?
How does the price system respond to surpluses and shortages? In: Economics [Edit categories]
When would you want to own a business that sells price elastic products?
You would want to own a company that offer price elastic products when there are no close substitutes. Although customers will respond to changes in price, they won't be able to substitute another product for yours.
What is the consumer behavior explain with suitable examples and a flow chart the concept of Marketing process?
Consumer behavior is the study of the way consumers respond to or utilize a particular product. The analysis of consumer behavior has become mandatory to marketing strategy. It enables for manufacturers and merchandisers to better direct marketing to a particular group.
Which allows retailers to respond to consumer buying patterns?
Data Mining
How do you measure whether producers respond to a price change?
a consumer will respond to the price changes in such a way that it could express its marginal utility
What is the measure of how much consumers will respond to price changes?
a consumer will respond to the price changes in such a way that it could express its marginal utility
What is the advantages for marketing research?
learn the habits of a certain demographic. how they respond to product. how to approach them with a product.
How do countries respond to the unequal distribution of resorces?
Countries may address unequal resource distribution through policies such as taxation, social welfare programs, and education initiatives to help redistribute resources more equitably. They may also promote economic development in marginalized areas to create opportunities for underprivileged populations. International aid and collaboration can also play a role in addressing resource disparities globally.
Do the baroreceptors respond to changes in barometric pressure?
Not typically. Barereceptors respond to touch and pressure. Atmospheric changes are too small to activate them.
How does a product get recall?
If your product poses an imminent threat of property damage or bodily injury, Products Recall Coverage should respond. It will respond to voluntary or involuntary (government or 3rd party-imposed) recalls that satisfy the policy trigger.
Why do shops spy on your life no i meant why do shops keep profiles on u coz i know things like this?
Shops spy on the the customers behavior usually through CCTV cameras in order to study their consumer behavior and to know that how consumers respond to different product offerings and what will be its impact.
Can you give me a sentence with the word consumers in it?
Many consumers will respond favorably to our product's latest upgrade.
How did the advertising industry respond to the end of World War 2?
Ad men worked to create new markets for consumer goods
What is the word for a personal loss to develop and market a new product?
You can respond to personal loss by.... please i need the answer!!
