X hits on this document

Powerpoint document

The slides are in the following order - page 30 / 64

133 views

0 shares

0 downloads

0 comments

30 / 64

6.

Derived demand – The demand for industrial goods is driven by the

demand for consumer goods. The boom in the construction industry is

driving the demand for cement and steel.

7.

Inelastic demand – Demand for many business goods and services is inelastic

- that is not much affected by price changes. For example the demand for

batteries is not going to change much with price as the demand of batteries

is driven by the demand for automobiles.  

8.

Fluctuating demand – A small increase in the consumer demand can give rise

to a significantly large increase in industrial demand – this effect is called the

acceleration effect. Similarly a 10% fall in consumer demand can cause a

significant decrease of the industrial demand.

9.

Geographically concentrated buyers – there is clustering to rationalize

production – software in Bangalore; hosiery in Coimbatore; auto-ancillaries

in Pune and Nasik etc.

10.Direct Purchasing – Firms buy direct mostly rather than thru intermediaries

Document info
Document views133
Page views133
Page last viewedSun Dec 04 16:57:04 UTC 2016
Pages64
Paragraphs743
Words3679

Comments