Managerial Economics

Forecasting Demand

Identifying the key determinants of demand and developing demand functions gives a business manager a better understanding of his customers. A benefit of that understanding is an improved accuracy in forecasting the demand levels for their products and services in an upcoming period. Most businesses need to plan production activities well in advance of when the goods and services are actually provided to the consumer. Businesses need to have an adequately sized operation, have a sufficient staff

Figure 3.1. Shift in demand curve for broadband service caused by increase of competitor price from $25/month to $35/month.

in terms ...