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Importance of demand analysis?
Analysis of demand is a methodology under which we analyze the influences of the determinants of demand on demand itself. It is important because the demand determines the sustainability and expansion of business
In a perfectly competitive market an increase in demand will in the long run generally cause?
An increase in demand in a perfectly competitive market will lead to an increase in revenue for the business. The more they sell the more they will make.
If people decided to have more children doest it affect to demand and supply?
If significant numbers of people decided to have more children, it may affect supply and demand. It would lead to more demand and less supply.
How would low interest rates affect airlines?
Low interest rates positively affect airline industries because they lead to the investment of new technology and capital. This will increase the rate of return and increase the value of the infrastructure and services at lower costs, which will induce better quality and higher demand, which will financially benefit the airline industries with lower rates of inflation. High interest rates will actually increase inflation.
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.
How do you show on a demand curve an increase in the demand for a good?
You can choose to shift the demand curve to the right i.e. expansion of demand.
What is Expansion and Contraction of demand in economics?
Increase or decrease of demand due to change in price
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.
How do complements affect demand?
Because of complimentary goods demand increase.
Which factor does not affect the elasticity of demand for a good?
An increase in population
What factor does not affect the elasticity of demand for a good?
Increase in the population.
How does supply affect health care How does demand affect health care?
When there are more options for healthcare, demand will drop. When there are less options, demand will increase for quality healthcare.
Why can the law of demand apply only in a free market economy?
demand refers to need for a resource. the law of demand states that an increase in demand will result in an increase in price, ceteris paribus. in a free market economy, sellers are free to increase prices when demand increases. in a closed economy prices are controlled by government. an increase or decrease in demand doesn't affect prices.
How can consumer expectations affect demand?
If consumer expected price increase for any reason in such good, he will buy it before the time he expects to apply for that increase and accordingly will increase demand and vice versa.
What determines the supply and demand of the factors of production?
The demand for labor is a derived demand in that it depends on a company's decision to supply output in another market. This expansion in a market that has customers is the main factor in how much the demand for labor will increase.
What is Difference between extension of demand and increase in demand?
In AS/A2 examination economic theory, an increase in demand would normally refer to an increase in the quantity demanded at every price level (i.e. a shift in the "curve"). An extension of demand is an increase in the quantity demanded because the price has changed (usually because supply has shifted) - ie a movement along the demand curve. Sad but true!
What is the demand expansion?
Demand Expansion refers to the situation where, the demand for a particular product is increasing across geographical boundaries.
