MKT 2210 Lecture Notes - Lecture 21: Fixed Cost, Demand Curve, Variable Cost

• School: University of Manitoba
• Department: Marketing
• Course: MKT 2210
• Professor: Malcolm C.Smith

Document Summary

As price falls, more people device to buy and unit sales increase, economists emphasize three other key factors: consumer tastes. These depend on many factors such as demographics, culture, and technology. The price of subsitutes falls or their availability increases, the demand for a product will fall. As real consumer income (allowing for inlaion) increases, demand for a product also increases. The irst of these two factors inluences what consumers want to buy, and the third afects what they can buy. Oten called demand factors or factors that determine consumers willingness and ability to pay for goods and services. Inelasic demand means that slight increases or decreases in price will not signiicantly afect the demand, or units sold for the product. Inelasic demand is when buyers are less price sensiive when the product they are buying in quite for a high in quality and presige. Demand curves lead directly to an essenial revenue concept criical to pricing decisions.