Identify and explain the main economic factors that affect the demand for a product; the supply of a product and the resulting product price. The main economic factors that affect the demand of a product Price Price is considered the most important factor that affects demand; higher the price of a product, lower the demand and vice versa. Income levels Changes in income levels determine the buying power of an individual, thus an increase in income levels increases their ability to purchase goods and services. Thus the demand for a product will increase. Consumer tastes and preferences As society evolves, the tastes and preferences of consumers change too.
Some developments in the global economy saw the shift from structuralism to neoliberalism. The first one was the import substitution industrialization that caused serious economic imbalances. Secondly, a group of East Asian countries were performing better than all other groups in the global market and it was associated to neoliberalism. Thirdly, governments were forced to make reforms as a
Formerly if the tariff is supposed to make price of the good increase to allow local manufacturers to sell at a greater price, the tariff might not have much of the anticipated effect. A quota might do more to increase price. Nevertheless, in competitive markets there is continuously particular tariff that increases the price as great as the quota
Demand as a factor to explain trade was not new. Linder (1961) first introduced demand to explain intra-industry trade, but his theory only focused on the similarities of demand among the nations. However, Porter’s theory mainly focused on the demand differences. According to Porter (1990), home demand shaped how firms perceived, interpreted and responded to buyers’ needs. This forced home country firms to continually innovate and upgrade their competitive positions to meet higher standards in terms of product quality, features and service demands.
According to Gray (1991), It is believed that dynamic industries create rent for a country and the spillover results of such industries are of great value to the home nation and as a result, increases the country’s standard of living and welfare through such economic growth. Paul Krugman (1994) criticised the concept of National Competitiveness
This implies that the exports from these countries are sensitive to income level changes in the developed countries. The developed countries are the major export destinations for these countries. Typical demand functions of exports tend to yield biased estimates of the parameters if the supply side variables are not incorporated in the model (Riedel 1988, cited in Roy 1991). The models used to estimate the export flow should therefore incorporate both the demand and the supply side variables. Roy (1991) argued that such export functions cannot be referred to as export demand functions or export supply
In the developed countries, monetary policy is regarded just as the variation in policy indicators i-e interest rate, but in developing nations like Pakistan, SBP focuses upon a wide variety of policy indicators because they want to attain lot of objectives through the implementation of a finest monetary policy (Bhattacharyya, 2012). When money supply changes, its price i-e interest rate is also affected. Although, saving and investment, both are functions of interest rate, so they are also influenced. The effects of monetary policy on unemployment differ from nation to nation. Unluckily, like many other developing countries, Pakistan has very limited study material and literature over the association between monetary policy and unemployment.
Takeovers or mergers: When there is anticipation that a company will become a potential takeover target there is positive price movement seen in the stock of the company. This happens as companies are generally taken-over at a price which is at a premium to the current market valuations. In other words, it means that the shares of the company will be bought over at a higher price than its current market price, which will eventually move stock prices higher. 3. Launch of new products and services: The launch of new products also lead to appreciation in stock prices.
In the backyard farm and experience Maybe time living and housing INTRODUCTION Visit to Pakistan in the history of the taxation of agriculture through the system by the consumer. And the return value is inelastic, it is necessary to respond to changes in the agricultural tax, the income is considered. "And, in fact, more the course to the needs of the national economy, and pressure from the World Bank, the International Monetary Fund (IMF) to largest agricultural project in Pakistan in 1993 and 1996 are offered in different variants both the past and the [World Bank (1999).] However, the introduction of agricultural revenue is a very contentious issue in Pakistan, law enforcement officials and economists, researchers and governmental environments. Conversely nine Myanmar [Pakistan