price elasticity
analysis of demand contribute to business decision making
It help the management to analyze the change in prise of the products
The degree of change in the demand for one product as a response to a change in the price of a different product. For example, an increase in the price of petroleum is likely to have a negative impact on the demand for gas-guzzling vehicles and a positive impact on the demand for fuel-efficient vehicles. The cross elasticity for substitutes is generally positive, in that a price increase for one product will result in an increase in demand for a substitute.
why is demand estimation and forecast important for managerial decision making
There could be many things said about elasticity of demand that are false, but there would be no point in making things up that are not true. This appears to have been taken from a multiple choice exam.
analysis of demand contribute to business decision making
It help the management to analyze the change in prise of the products
Supply + Demand = Price
The degree of change in the demand for one product as a response to a change in the price of a different product. For example, an increase in the price of petroleum is likely to have a negative impact on the demand for gas-guzzling vehicles and a positive impact on the demand for fuel-efficient vehicles. The cross elasticity for substitutes is generally positive, in that a price increase for one product will result in an increase in demand for a substitute.
why is demand estimation and forecast important for managerial decision making
There could be many things said about elasticity of demand that are false, but there would be no point in making things up that are not true. This appears to have been taken from a multiple choice exam.
Decision-making can be significantly influenced by elasticity, which measures how responsive the quantity demanded or supplied is to changes in price. For businesses, understanding price elasticity helps in setting optimal pricing strategies; for instance, if demand is elastic, a price increase could lead to a substantial drop in sales, prompting a reevaluation of pricing. Similarly, in public policy, knowing the elasticity of goods can guide decisions on taxation and subsidies, as these can impact consumer behavior and overall economic welfare. Therefore, elasticity serves as a critical factor in evaluating potential outcomes of various decisions.
The correct priority in making a business decision is consulting all the major stakeholders.
What is SWOC analysis and explain its relevance to business decision making
What is SWOC analysis and explain its relevance to business decision making
decision making is the method which can help you make decision when are starting a business or try to do so.
dont no