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Unformatted text preview: attempt to ensure that they’ll be the top selling provider. Demand is defined as the functional relationship between the price of a good or service and the quantity demanded by consumers in a given time period, all else held constant. (Farnham, 2010. P. 19) This being said, demand also is impacted by a consumers desire and ability to purchase a product at a specific price. If a good or service is priced too highly for a consumer, they’re more likely to look for an alternative brand that may be less, such as an off-brand label or a completely different item all together that could provide the same thing but at a reduced price. Equilibrium is the situation in which the supplied item is equal to its demand. If there is neither a shortage nor surplus in the market there is no need for the item’s price to vary or change. Sources Used: • Farnham, P.G. (2010). Economics for managers (2 nd ed.) Upper Saddle River, NJ: Pearson Education Inc., Published as Prentice Hall....
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This note was uploaded on 01/14/2012 for the course ECO 550 taught by Professor Gooding during the Spring '09 term at Strayer.
- Spring '09