Understanding Human Needs Human needs are the starting point of marketing and can be physiological, social, cultural, or individual. All new inventions aim to satisfy human needs.
Differentiating Between Wants and Demands Wants arise from desires for specific satisfiers of needs and vary based on culture, social class, and personality. Demands are wants backed by the ability and willingness to buy products that provide maximum satisfaction.
Exploring Demand in Economics Demand is influenced by factors such as purchasing power, willingness to pay, price changes; represented graphically through demand curves showing quantity demanded at different prices.
Analyzing Supply in Economics 'Supply' refers to the amount of commodity sellers offer for sale at a certain price. The law of supply states that as product prices increase so does its quantity supplied.
Market Equilibrium & Interaction Equilibrium occurs when quantity demanded equals quantity supplied determining market price & quantities bought/sold. Surpluses lead to lower prices while shortages drive up prices until equilibrium is reached