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State the Demand analysis
Analysis of demand is assumed to forecast demand that is a basic component in managerial decision-making. Demand forecasting is of importance since an estimate of future sales is a primer for preparing production schedule and using productive resources. Demand analysis assists the management in identifying factors which influence the demand for the products of a firm. So demand analysis and forecasting is of prime importance to business planning.
Broader the range of other uses of a commodity, higher the price elasticity of its demand intended for the fall in price though less elastic for the increase in price. As price of
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