primary demand

Examples of primary demand in the following topics:

• Market Share

  • Market share is key metric that helps firms evaluate demand in their market and can be influenced by PR and marketing campaigns.
  • This metric, supplemented by changes in sales revenue, helps managers evaluate both primary and selective demand in their market.
  • Selective demand refers to demand for a specific brand while primary demand refers to demand for a product category.
  • Generally, sales growth resulting from primary demand (total market growth) is less costly and more profitable than that achieved by capturing share from competitors.
  • The price reduction is intended to increase demand from customers who are judged to be sensitive to changes in price.

• Market Share

  • This metric, supplemented by changes in sales revenue, helps managers evaluate both primary and selective demand in their market.
  • Generally, sales growth resulting from primary demand (total market growth) is less costly and more profitable than that achieved by capturing share from competitors.

• Impacts of Supply and Demand on Pricing

  • That is, the quantity demanded typically rises causing a downward sloping demand curve.
  • A demand curve shows the quantity demanded at various price levels.
  • This total market demand by all buyers for a product type (not just for the company's own brand name) is called "primary demand. " Additionally, a lower price may cause buyers to shift purchases from competitors, assuming that the competitors do not meet the lower price.
  • If primary demand does not expand and competitors meet the lower price, the result will be lower total revenue for all sellers.
  • Demand-oriented pricing focuses on the nature of the demand curve for the product or service being priced.

• Reasons for Maintaining Cash on Hand

  • For an individual bank, clients' deposits are its primary liabilities (in the sense that the bank is meant to give back all client deposits on demand), whereas reserves and loans are its primary assets (in the sense that these loans are owed to the bank, not by the bank).
  • The investment portfolio represents a smaller portion of assets, and serves as the primary source of liquidity.
  • Investment securities can be liquidated to satisfy deposit withdrawals and increased loan demand.
  • In a worst case scenario, depositors may demand their funds when the bank is unable to generate adequate cash without incurring substantial financial losses.

• Market Adjustment to Change

  • Market systems are favored by Neoclassical economists for three primary reasons.
  • The demand function was expressed:
  • Remember that a change in the price of the good (Px) is a change in quantity demanded or a movement along a demand function.
  • A change in any other related variable will result in a shift of the demand function or a change in demand.
  • In Figure III.A.10 the effects of a shift in demand are shown.

• Labor Union Impacts on Equilibrium

  • The primary activity of the union is to bargain with the employer on behalf of union members and negotiate labor contracts.
  • If employers (those who demand labor) have an inelastic demand for labor, the increase in wages (the price of labor) will not translate into a drop in employment (quantity of labor supplied).
  • If, however, their demand is elastic, employers will simply respond to union demands for higher wages by hiring fewer workers.

• Oligopoly

  • In the 1930's the "kinked demand" model [published by Paul Sweezy in August 1939 and by R.L.
  • Primary metals industries are examples of oligopolies with homogeneous goods.
  • Figure VIII.6 is a graphical representation of the demand and revenue functions of a firm in a oligopoly that is modeled as a kinked demand.
  • The demand function relative to price cuts in inelastic; cut price and TR falls.
  • The demand above the prevailing price is relatively elastic; raise price and TR falls.

• Defining Stress

  • Stress occurs when a demand exceeds an individual's coping ability and disrupts his or her psychological equilibrium.
  • While it is generally agreed that stress occurs at work, views differ on the importance of worker characteristics versus working conditions as its primary cause.
  • Task Demands - This is the sense of not knowing where a job will lead you and whether the activities and tasks will change.
  • Role Demands - Role conflict happens when an employee is exposed to inconsistent or difficult expectations.
  • Physical Demands - Many types of work are physically demanding, including strenuous activity, extreme working conditions, travel, exposure to hazardous materials, and working in a tight, loud office.

• The Federal Open Market Committee and the Role of the Fed

  • One of the primary tools used by the Federal Reserve (the Fed) to conduct monetary policy is open market operations: the buying and selling of federal government bonds in order to influence the money supply and interest rate.
  • These operations are the primary responsibility of the Federal Open Market Committee (FOMC).
  • This involves meeting the demand for money at the target interest rate by buying and selling government securities or other financial instruments.
  • If there is an increased demand for money and the Fed takes no action, interest rates will rise.
  • Thus, the increase in demand for money is met with an increase in supply, and the interest rate remains unchanged.

• What Taxes Do

  • On a general level, tax collections provide a revenue source to support the outlays or primary activities of a government.
  • Taxes are the primary source of revenue for most governments.
  • As a result, the quantity demanded and supplied reacts according to the supply and demand curves.
  • On a general level, tax collections provide a revenue source to support the outlays or primary activities of a government including but not limited to public buildings, military, national parks, and public welfare in the form of transfer payments.