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What is a demand for a product?
A demand for a product is when a customer expresses a desire or willingness to purchase a product. It is the amount of a product that customers are willing to buy at a specific price. Generally the demand for a product is determined by the price of the product the customers income the availability of a substitute and the customers preferences. When the price rises demand falls and when the price decreases demand increases.Factors that affect the demand for a product include: Price of the product Customers income Availability of a substitute Customers preferencesIf the price of the product rises then the demand for the product falls and vice versa. This is due to the fact that customers are willing to pay a certain price for a product and when the price increases customers will be less likely to purchase the product.
What will happen to demand for a commodity if the price of its complementary falls?
Complement goods are those goods which uses collectively or side by side e.g petrol and cars. If the demand of one good changes then demand of other good move in the same direction. If the price of product complementary falls then the demand of complementary product increases according to the demand law which in turn increase the demand of product. Suppose the prices of petrol falls which will increase the demand of petrol which in turn in increase the demand of cars.
How does an increase in a products price affect demand for the demand for the product's complements?
It can affect demand because of individual low income earner.
What determines a price of a good service?
The price and quantity are generally determined by the demand for the products, e.g the desire by consumers to purchase them. Generally, the greater the demand, the higher the price, and the greater the quantity that will be produced for sale.
What is importance of elasticity?
Cross elasticity of demand is the responsiveness of demand for one product to a change in the price of another product. It will help predicts how prices of products will act.
What is a demand for a product?
A demand for a product is when a customer expresses a desire or willingness to purchase a product. It is the amount of a product that customers are willing to buy at a specific price. Generally the demand for a product is determined by the price of the product the customers income the availability of a substitute and the customers preferences. When the price rises demand falls and when the price decreases demand increases.Factors that affect the demand for a product include: Price of the product Customers income Availability of a substitute Customers preferencesIf the price of the product rises then the demand for the product falls and vice versa. This is due to the fact that customers are willing to pay a certain price for a product and when the price increases customers will be less likely to purchase the product.
What will happen to demand for a commodity if the price of its complementary falls?
Complement goods are those goods which uses collectively or side by side e.g petrol and cars. If the demand of one good changes then demand of other good move in the same direction. If the price of product complementary falls then the demand of complementary product increases according to the demand law which in turn increase the demand of product. Suppose the prices of petrol falls which will increase the demand of petrol which in turn in increase the demand of cars.
How does an increase in a products price affect demand for the demand for the product's complements?
It can affect demand because of individual low income earner.
What determines a price of a good service?
The price and quantity are generally determined by the demand for the products, e.g the desire by consumers to purchase them. Generally, the greater the demand, the higher the price, and the greater the quantity that will be produced for sale.
What is importance of elasticity?
Cross elasticity of demand is the responsiveness of demand for one product to a change in the price of another product. It will help predicts how prices of products will act.
What is importance of cross elasticity?
Cross elasticity of demand is the responsiveness of demand for one product to a change in the price of another product. It will help predicts how prices of products will act.
The law of Demand?
The law of demand states that as price of an object goes up, the quantity goes down. However, as the price falls then quantity rises. IF price falls, demand increases and if price rises, demand decreases.
What happens to the price when there is a shortage of products?
The prices increases, because the demand is higher for the product, since there is less of it.
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.
What happens to the total expenditures for a product with elastic demand when is price goes up?
When the price falls and the demand is elastic ie. ed >1 the total expenditure increases according to the total outlay method.
What are two external factors to be considered when setting the price for the product?
When setting the price of products organizations much consider competition. Another aspect the need to consider is the demand for their product.
Does a supply of a product refer to the number of similar products that will be bought at a given time and at a given price?
No. The supply is the number of similar products that are AVAILABLE at a given time and a given price. If the demand for the product at that price is less than the supply, not all the product will be bought (you will have some surplus product). In that case, "the number of similar products that will be bought at a given time and at a given price" represents the DEMAND (not the supply). It's called the law of supply and demand. Here's how it works. If the ratio of demand/supply is constant, then the price should remain constant. However, if that ratio increases, then the price should go up. If that ratio decreases, then the price should go down. If price goes down without changing the supply, then that will likely increase demand, changing the ratio of demand/supply, and resulting in the price increasing. If price goes up without changing supply, then that will likely result in reducing demand, resulting in changing the ratio of demand/supply, resulting in the price going down.
