The Role of Economics in Business Firms

527 Words3 Pages
Introduction The purpose of this academic essay is to establish the differences between demand analysis and demand estimation while describing the importance of each to firms with regard to managerial economics. This document will also explore price elasticity and its relation to marginal revenue and profit maximization. The significance of this essay for the student body audience is to provide a canopy for integrated learning economical concepts and their application to real world scenarios in business related occupational fields. Literature Review To provide the best assessment possible it important to annotate and define all key words associated with the topic. Demand may be defined as the quantity of goods and/or services consumers are able and willing to purchase during specified periods or set times. Demand is influenced by host of economic factors such as consumer income, marketing, and availability. Demand Analysis determines how many units of a product or how much of a service to offer to consumers in addition to supporting possible retail pricing standards...
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