How to Determine and Quantify Things that Affect Demand

How to Determine and Quantify Things that Affect Demand
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Reflection of Chapter Four
Chapter four, “What Drives Demand? Modelling Dependent Variable Techniques,” depicts how to determine and quantify things that affect demand. Although I knew that the primary purpose of marketing is incentivizing customers to buy, I was not aware that purchases are called demand by economists. In reality, I understand that supply and demand determine the prices of goods and services in a free market. Chapter four has helped me learn the two types of statistical techniques, namely the inter-relationship and dependent equation type (Grigsby, 2018). Dependent statistics focus on explicit equations, which can be probabilistic or deterministic, and inter-relationship techniques are the variance between variables.
I have learned that deterministic equations are algebraic. For example, y=mx+b, where the right side is equal to the left side. One can determine profits using the following equation, profit=revenue – expenses. Additionally, the law of demand posits that the average units decrease when the price of products increases. In that case, I have learned that price is a sign...