Product Development: Why Are Oil Prices So Unstable
Instructions
- Read the Making the Connection short case titled Forecasting the Demand for iPhones in Chapter 3 of our textbook, and also be sure to watch the video right under the Making the Connection title (maybe a few times). Then post your first posting this week beginning to discuss what you’ve read and watched in the video.
- Then work on Problems and Applications 1.17, at the end of Chapter 3, answering and discussing the questions in that exercise.
respond#1
Can you think of an example of a change in a demand determinant causing a significant change in equilibrium price?
Answer Preview
In a market that has a high elastic of demand the general direction of price is that they remains relatively stable due to the availability of the many substitute products in the same market. If a certain brand of chocolate bar increases its price, the consumers will switch to other products in the market and hence the demand will reduce. The general direction in this situation is that demand and price have a negative impact on each other with reduced prices increasing the demand.
Length: 300