Factors affecting demand forecasting - price, Microeconomics

Assignment Help:

Price: The price factor is another important variable to be included in demand analysis. Here one has to consider the prices of the product and also its substitute and complements one may also consider the price differences between the product concerned and its substitutes and compliments.

Price as a determinant of the volume of sales of consumer non durable is sometimes more important through cross elasticity ( involving substitute products) than it is directly in terms of price elasticity. Direct price elasticity can expected to be more important with respect to those consumer non durables which are capable of storage and are freeform risks of changes in styles.


Related Discussions:- Factors affecting demand forecasting - price

Monopoly market, Question : (a) Differentiate between the characterist...

Question : (a) Differentiate between the characteristics of a perfectly competitive market and those of a monopoly market structure. (b) To what extent is a monopoly mark

Nucleic acid functions, Nucleic acids perform two important functions 1...

Nucleic acids perform two important functions 1. Replication:  It is the property of biomolecules to synthesise exact copy of it. DNA has this unique property of duplicating it

Economic rent, Economic Rent - Economic rent is difference between what...

Economic Rent - Economic rent is difference between what firms are willing to pay for the input less the minimum amount required to obtain it. * An Example - There are tw

International comparisons method, International Comparisons Method In ...

International Comparisons Method In the 1960s, a few developing countries of the world looked around the developed world in search of models of development. For instance, Sout

Determine the nash equilibrium, Player 2   C ...

Player 2   C B A 1,2 3,2 B 2,3 a, b         Player 1

Equilibrium exchange rate, Equilibrium Exchange Rate: The theory of ex...

Equilibrium Exchange Rate: The theory of exchange rate determination explains how demand and supply of foreignexchange interact and jointly determine the equilibrium exchange

Consumer surplus, on what grounds is consumer surplus criticised?

on what grounds is consumer surplus criticised?

What is mixed economy, Mixed Economy: This type of economic system combines...

Mixed Economy: This type of economic system combines the features of both the capitalist and socialist economic systems. The private sector is allowed to function on the principles

Market Demand, Ask quesThe market demand for brand X has been estimated as ...

Ask quesThe market demand for brand X has been estimated as Qx = 1,500 - 3Px - 0.05I - 2.5Py + 7.5Pz where Px is the price of brand X, I is per-capita income, Py is the price of

Steam question, Processors of aseptically packaged juice-based beverages mu...

Processors of aseptically packaged juice-based beverages must adequately heat their product before packaging it in order to be sure that they have “killed” the microorganisms which

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd