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The law demand - the economic law, proposed by English economist Alfred but Mcluhan could not,According to which the demand for the product or services for a specified period of time is inversely proportional to its largest price.
The Law demand identifies and other important special feature:The gradual descending demand customers. This means that reducing the number of purchases the product is not only as a result of rising prices, but also due to saturation.
In order to understand the reasons for the changes in demand, there is a need analysis of non-price factors, affecting the commodity markets and the function customer demand.
the reasons for demand reduction (reduction of purchases) :Lord - memorised proposal:If there will be a substantial increase in supply of products to market competition, it will reduce demand for thy products;
- a tendency to reduce the demand may be not permanent, temporary in nature.It is therefore not where rolled up production or to restrict their own plans for the opening, the creation of new industries.Lord the reasons for the increase in demand:
- For the short-term reduction in proposals may be followed by nothign boom for the goods;
- in Unicredit Bank is dramatically increased demand for goods;
- Psychological impact on the market is the economic reform: official communications authorities on the forthcoming price increases, regular campaign in the press, rumours and so on, creating a market spikes,To improve, домохозяйства demand in the consumer market.
the proposal - this is the goods on the market.
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