What Is The Nature Of Demand In Business Markets
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Demand in business market is derived demand.
What is the nature of demand in business markets. Therefore the demand for microprocessors comes from the demand for final consumer goods. Business markets have d erived demand business demand that ultimately comes from or derives from the demand for consumer goods. Demand in business markets fluctuates less than in consumer.
We denote three scenarios in the common market place. Demand in business markets fluctuates less than in consumer markets. The demand of the business market is much more fluctuating.
The correct option is E. Derived word indicates that the demand for something only exists so long as there is a demand for the goods or services that it helps to produce. It should also be noted that demand for the business markets and business products also tends to fluctuate which only implies that the demand for business market products can change relatively quickly than the demand for consumer goods or services.
The buyer may give total responsibility of a component to a supplier. If consumer demand for computers goes down so will demand for microprocessors at the beginning of the chain. Suppliers should monitor emerging needs and tastes of consumers to be able to forecast what their business customers would buy.
Demand in business markets does not fluctuate. What is the nature of demand in business markets. Demand in business markets fluctuates less than in consumer markets.
The forces of supply and demand meet and react in a market. Business market demand is independent of consumer market demand. Nature of Demand in Industrial Markets.
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