Methods of demand forecasting are broadly categorised into two types: 1. Qualitative 2. Quantitative Techniques
Demand forecasting is a process of predicting the demand for an organisation’s products or services in a specified time period in the future.
Elasticity of supply is a measure of the degree of change in the quantity supplied of a product in response to a change in its price.
The advertisement elasticity of demand is a degree of responsiveness of a change in the sales of a product with respect to a proportionate change in advertisement expenditure.
The cross elasticity of demand can be defined as a measure of a proportionate change in the demand for goods as a result of a change in the price of related goods.
Income elasticity of demand means the ratio of the percentage change in the quantity demanded to the percentage in income.
The concept of price elasticity of demand plays an important role in the functioning economies by having a significant contribution in the field of industry, trade, and commerce.
The price elasticity of demand of a product reflects the change in the quantity demanded as a result of a change in price.
There are 5 types of price elasticity of demand: Perfectly Elastic, Perfectly Inelastic, Relatively Elastic, Relatively Inelastic, Unitary Elastic.
Price elasticity of demand is the measure of a change in the quantity demanded of a product due to change in the price of the product in the market.