Supply and Demand | Economics Assignment
Added on - 18 Sep 2019
Showing pages 1 to 2 of 5 pages
Explore the supply and demand conditions for your firm’s product.a)Evaluate trends in demand over time and explain their impact on the industry andthe firm. You should consider including annual sales figures for the product yourfirm sellsThe aim of assessing trends is to decide whether individual can apply them to forecast upcomingtransformation moreover whether a fastidious trend has some significance for individual’s firm.When individual recognize a trend which impacts individual’s marketplace or individual’sprocesses, individual can arrange some activities that contradict the trend. Individual have toassess the range, route and path of a trend previous to individual can respond to it.Total customer expenditure (TE) is a further critical purpose of price elasticity of demand. It willbe the alike as total revenue (TR) received through firms before removing expenses.According to Sloman, when demand is in flexible, a boost in cost directs to a increase in totalexpenses of customers for that good and therefore a raise in the entire profits that the firmcollects also vice versa.When demand is flexible - a reduce in cost leads to an increase in whole spending of customersfor that good, thus, the firm full proceeds will go up and vice versa.
a)Analyze information and data related to the demand and supply for your firm’sproduct(s) to support your recommendation for the firm’s actions. Remember toinclude a graphical representation of the data and information used in your analysisThe demand along with supply of commodities is at the same time as a consequence of a varietyof aspects which have an effect on it which it takes in the cost of the commodities, consumers gothrough and first choices, price of production, usual circumstances, transportation situation aswell as government guiding principles. This factors control demand in addition to supplyabsolutely or pessimistically. For instance in price of production if it’s elevated the cost willclimb up as well as this in return will show the way to low demand in addition to less supply. Ifthe convey is easier then the demand with supply of the commodities will be far above theground. As of the diagram the increase in demand is as effect of reduced in cost althoughenhance in amount raises supply of a product.