Management and Decision-Making

Many factors affect the demand for a product, which is a concern for management and the decision-making process. To correctly assess the demand for their products, managers must determine the effect of all relevant variables. Select a particular industry or product and define the following variables: Inferior versus normal goods. Substitution and income effects. Derived demand. Changes in real and projected incomes. Discuss how these variables can affect the demand for your product or industry and what methods could be used to estimate the effect of these variables. Justify your answer.

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