
236 Decision Based Design
demand is 25,000 per year. It is usually seen that market size assessment, by
arguing along these lines, provides a pretty accurate estimate. The reason
is that the errors in different assessments (competitors, number of house-
holds) tend to cancel out. These assessments also allow for a structured
way of thinking about demand.
8.2.5 Demand Curve and Price Elasticity
A more formal treatment of the effect of product attributes on the quantities
sold is considered under demand curves. A demand curve is a plot of demand
versus an attribute of concern. For a mass-produced commoditized product
this attribute is most common ...