Factors Affecting Demand For Consumer Goods

The goods which can satisfy the human wants directly are called consumer goods. We demand consumer goods to satisfy the wants. The demand for consumer goods is called direct demand. The consumer goods can be classified into two types. 1. Durable consumer goods. 2. Non-durable consumer goods. Durable consumer goods: The goods which can be used for some period of time in satisfaction of wants are called durable consumer goods. For example, TV, Refrigerator, Mobile phone etc. Factors affecting demand for consumer goods (Durable Consumer Goods): The demand for durable …

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Difference Between Individual Demand Schedule And Market Demand Schedule

Individual Demand Schedule And Market Demand Schedule 2

Demand Schedule is the trend how a buyer purchases his desired commodity under a market condition. This is the responsiveness of the quantity demanded due to changes in price, income or other factors affecting demand. There are two types of demand schedules, namely, individual demand schedule and market demand schedule. Individual demand schedule: Individual demand schedule shows different quantities of a commodity purchased by a consumer at different prices in the market. This is shown in the following table: Price of commodity ‘A’ (in $) Quantity purchases (in units) 5 …

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What Are The Characteristics Of Derived Demand

What Are The Characteristics Of Derived Demand

What Is Derived Demand: Goods and services are necessary for the satisfaction of human wants. Some goods satisfy our wants directly e.g. Books, Television, food etc. The demand for these goods is direct. On the other hand some goods satisfy our wants indirectly, e.g. machinery, buildings, raw materials etc. The demand for these goods depends upon the demand for the goods which they produce. For instance the demand for textile machinery depends upon the demand for clothes. Since the demand for textile machinery is derived from the demand for clothes, …

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What Are The Different Methods Of Demand Forecasting

methods of demand forecasting

Demand forecasting helps the company to produce the required quantities of products at the right time and to arrange the various factors of production in advance. Forecasting demand accurately also helps a company to estimate the future demand for its products and plan its production. There are different methods of demand forecasting in business which are commonly known as demand forecasting techniques. There are mainly two methods of demand forecasting in business, namely – Survey method and statistical method. However, the Methods Of Demand Forecasting In Economics are presented below: …

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Objectives Of Demand Forecasting In Business Economics

The objectives of demand forecasting

Objectives of demand forecasting : Demand forecasting has a great importance and purpose in business planning. An accurate demand forecasting helps the company in number of ways. It helps the company to produce the required quantities of products at the right time and to arrange the various factors of production in advance. It also helps a company to estimate the future demand for its products and plan its production.The purposes or objectives of demand forecasting vary according to the type of forecasting. The purposes of short-term demand forecasting are different …

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Factors Involved In Demand Forecasting

Generally, every business firm looks for profit maximization. It should carefully observe the market demand conditions for its products. It should also predict the changes in market demand in future. A prediction or estimation of future demand for the product is known as demand forecasting. There are so many factors involved in demand forecasting. Normally, every business organization predicts a number of related forecasts. Since the future is uncertain, these forecasts may not be hundred percent accurate. But every organization tries to obtain the forecasts as precise as possible. Demand …

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Difference Between Derived Demand And Autonomous Demand

Demand for goods is classified in many ways in Economics. On the basis of the nature of demand for goods, demand is classified into derived demand and autonomous demand. When the demand for a good depends on the demand for other goods, it is known as derived demand. Demand for cement and iron is an example for derived demand. Cement itself is not demanded by any one. Its demand is influenced and determined by the nature and extent of construction activities. Similarly, the demand for producers goods is an example …

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Cross Demand Curves For Substitutes And Complementaries

cross demand curve for complementaries

Cross demand: Cross demand is an important type or demand. It denotes the relationship between changes in the quantity demanded of commodity due to the price changes in its related goods. Substitutes and complementaries are the related goods of a commodity. Cross demand curve in the case of substitutes : In the case of substitutes the cross demand curve slopes upwards from left to right. A change in the price of one of the two commodities leads to a change in the quantity demanded of another commodity which is a …

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Income Demand Curve For Inferior and Superior Goods

income demand curve

Income demand denotes the relationship between income and quantity demanded of a commodity. It shows the changes in quantity demanded of a commodity due to the changes in income.  Income and demand are directly related to each other. Normally people demand more quantity of different commodities when their income increase.The income demand curve slopes upwards from left to right. But  income demand is not same in the case of all commodities. The income demand for superior goods increases with an increase in the income of the people. When income of …

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Importance Of Separation Of Fixed And Variable Expenses

It is necessary for an organization to segregate and focus on its Fixed and Variable expenses. If this task or action is taken lightly then the organization has to suffer from many decision making problems like Break-even Analysis (Cost-Volume-Profit Analysis), Gross Margin Analysis or Contribution Margin Analysis. Although above three terms are interrelated, they have their different uses in different business decision making situations. But if Fixed and Variable expenses are not identified or separated in the organization, solution to these interrelated terms will be impossible. Do we know how …

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