011+Demand

Demand also follow this link to find a useful material on the Price Elasticity of Demand very important

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Price elasticity of demand= change in Quantity Demanded / Change in Price According to the economic law of demand, consumers will purchase less of a good if the price of the good increases. This negative demand function allows economists to predict how consumers will react to changes in price. Price elasticity of demand is the most common measure used to determine consumers’ sensitivity to price. The price elasticity of demand is the proportional change in demand given a change in price. In other words, the price elasticity of demand measures how a percentage change in price of a good will affect demand for that good. Goods are said to be inelastic if consumers will continue to demand the good, regardless of the price. Insulin is an example of an inelastic good: patients that require insulin will continue to pay almost any price for it. Products are said to be elastic if consumers stop demanding the product as prices increase. Restaurant meals are an example of an elastic good: most consumers will eat at restaurants less as the price of a meal increases.



How to convert the types of demand to be effective Demand is not only with wants it also with price 8 types of Demand Some of it : 1- Effective Demand(full Demand) : to be effective should two assumption must available
 * Ability to pay $
 * Awareness

2- Latent Demand (الكامن ) : a- consumer is unable to satisfy or lack of purchasing aware of product but not have money b- consumer unaware but have money

3- Potential Demand : consumer have money and aware
 * here the role of marketing to convert the latent demand a- or b- to potential demand and then convert to effective demand by offers, Paying by installments(التقسيط(, **

Economic Model Assumption



This model shows the relationship between Quantity and Price( Inverse relationship) that when increase the price the quantity decrease. The both of assumption include rationality by marketers and persuade consumer and be intelligence by convert wants to needs and consumer maximizing their satisfaction and revenues.

3) Types of Demands





This model show the relationship between the ability to pay money and awareness about product and meeting of these coordinates generate the types of demands .Moreover, the ways to convert the latent demand to be effective demand 1- uu -> au -> ua -> aa 2- uu -> au -> aa and ua -> aa

=__**Break even point ::**__=


 * Break-even ** (or ** break even ** ) is the point of balance between making // either // a profit or a loss.

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__**Three kind of value proposition ::**__ =