Why do you think it is important for managers to understand

Why do you think it is important for managers to understand the mechanics of demand and supply both in the short run and the long run?

Give examples of companies whose business have been helped or hurt because of changes in demand or supply in the markets in which they are competing.

What are some of the key non price factors which influence demand and supply?

Consider the following supply and demand curves:

         Q_S = 25,000P

        Q_D = 50,000 – 10,000P

Solution

What are some of the key non price factors which influence demand and supply?

Factors of Demand

Factors of Supply