Because demand creates the price, and not the price dictates the demand.
Here are two variablesDemand and Price, whereas Price is Independent variable &Demand is dependent variable, i.e. if price of something changes the demand will also be affected. Now simple Differential Equation isd (Demand)= constantd (Price)But keep in mind that Price is a function not a simple variable.
There is not a formal abbreviation for the word demand. However, there are abbreviations for services such as video on demand (VOD) that you get from your television provider.
demand
Change in the demand for a goods and the change in its price. The ratio is negative but the negative sign is usually dropped.
An independent demand is a demand that is not based on the demand for another item while a dependent demand is based on the demand for another item. For example, the demand for chairs of a table and the table itself is based on the demand for the table. The table in this example is the item with independent demand. Knowing this, one can forecast an independent demand while dependent demands are calculated based on the independent demand item. Business to business independent demands tend to be demands for such items as capital goods, office supplies, MRO (maintenance, repair, and operating) items, and anything else for which the dependency is unknown. Independent demands are usually handled with standalone purchase orders, although some items might be covered by contractual relationships such as volume, price and other agreements.
The key to the answer here is to consider what must be forecasted (independent demand), and given the forecast, what demands are thereby created for items to meet the forecasts (dependent demand). In a McDonald's, independent demand is the demand for various items offered for sale-Big Macs, fries, etc. The demand for Egg McMuffins, for example, needs to be forecasted. Given the forecast, then, the demand for the number of eggs, cheese, Canadian bacon, muffins, and containers can then be computed based on the amount needed for each Egg McMuffin. The manufacturer of copiers is integrated, i.e., the parts, components, etc. are produced internally. The demand for the number of copiers is independent (must be forecasted). Given the forecast, the Bill of Materials is exploded to determine the amounts of raw materials, components, parts, etc. that are needed. The pharmaceutical supply company is an extreme case where only end items are carried and nothing is produced internally. The bill of materials is the end item and, therefore, the independent demand (forecasted from customers) is the same as the dependent demand. One might attempt to consider that when the demand for items occurs together, that this is similar to a bill of materials. However, this is not a bill of materials, but rather a causal relationship making it easier to forecast.
The usual way is to plot the independent variable on the horizontal, and the dependent variable on the vertical. There are some where the dependent is on the horizontal, though. Supply-Demand and Price graphs in Economics comes to mind, as an example.
A company is selling a particular brand of tea and wishes to introduce a new flavor. How will the company forecast demand for it ?
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demand forecasting is crucial for sales forecast
why is demand estimation and forecast important for managerial decision making
Demand forecast is a prediction of the future demand for a product or service based on historical data, market trends, and other relevant factors. It helps organizations make informed decisions regarding production, inventory management, and resource allocation to meet customer needs effectively.
interrelated demand joint/complement demand competitive derived composite independent
Because demand creates the price, and not the price dictates the demand.
The two different sections of manpower forecasting are the manpower demand forecasting and the manpower supply forecasting. These techniques are used to regulate the supply and demand balance.
The usual way is to plot the independent variable on the horizontal, and the dependent variable on the vertical. There are some where the dependent is on the horizontal, though. Supply-Demand and Price graphs in Economics comes to mind, as an example.