MARKET STRATAGEMS INNOVATION. Mathematics & Economics Essay

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MARKET STRATAGEMS INNOVATION
People's never-ending needs fuel the economy. Increasing demand for goods affects the supplies and it is one of the factors in a price change. Price elasticity of demand shows how the worth variation affects the sales, and this information is useful for the market making the next big move. Economists use this information to lessen the risk of sales decline CITATION Econd \l 13321 (Economics Online). The graph of demand is the basis of the price increase for the future; as the demand continuously increases, the product has a higher chance to increase its price in the future.
In the real world, there are two things to consider if a business plans to raise the worth of the product; first thing is the growth of the income per product sold and; second is the number of the product sold, customers tend to look for alternatives when a business raise the worth of the product they are used to CITATION Cownd \p "Ch. 7" \l 13321 (Cowen and Tabarrok Ch. 7). Considering the first thing, this will benefit the business in ways but together with this, purchase demand will decline. Due to these considerations, capitalists look for ways to lower the worth of the product. That way, the purchase demand will grow, profit may not bloom in an instant but in the long run, it will.
Some aspects affect the relative elasticity in terms of demand and supply CITATION Unind \p "Ch. 4.2" \l 13321 (University of Victoria Ch. 4.2). In terms of demand, the aspects considered are; alternatives, the significance of a product, and consumer's salary. On the side of supply, assets, technology, and obstructions are the aspects that have a huge impact on the elasticity. These variables are analyzed by economists to consider in the future increase in the worth of goods. Traders have a greater advantage when an innovator is included...