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law of demand - the economic law, proposed by the British economist Alfred Marshall, according to which the amount of demand for the product or service for a certain period of time is inversely proportional to its price.
The law of supply and reveals another important feature: the gradual decrease in the demand of buyers. This means that the reduction of purchases of the goods is not only due to rising prices, but also due to the saturation needs.
In order to understand the reasons for changes in demand, analysis of non-price factors influencing commodity markets and the function of consumer demand.
The causes of lower demand (reduction of purchases) - You will be prompted if there will be a substantial increase in supply on the market competing products, this will reduce the demand for your product; - the downward trend in demand can not wear permanent, temporary. So do not rush to curtail production or restrict their own plans for the opening, creation of new productions. The reasons for increased demand: - for short-term reduction in supply could follow speculative boom of the goods; - in the holidays rapidly increasing demand for goods; - the psychological impact on the market has the economic Reform: the official reports of the authorities of the impending price increase, another campaign in the press, rumors and so on, creating opportunistic bursts, increasing, excessive demand in the consumer market. The proposal - is receipt of goods on the market.
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