The demand for certain products tends to be consistent, and people tend to need these products regularly. For example, most people need to eat every day, so the demand for food is fairly steady.

Businesses that produce these necessities rely on this constant demand to maintain a steady income. If their product were not needed or wanted, then their business would suffer greatly.

How does a business ensure continuous demand for its product? By maintaining a good quality at a reasonable price, of course!

Companies that produce staples such as eggs, bread, and electricity must maintain high quality at an affordable price in order to keep demand steady. If someone can offer their product at a lower cost while maintaining quality, then they will draw customers from the original company. Lowering quality would then hurt the company’s name and future sales.

This article will discuss more about the demands for such products as eggs, bread, and electricity.

Declining

the demand schedules for such products as eggs, bread, and electricity tend to be

The demand schedule for most products is declining, meaning that as the price of the product goes down, people will buy more of it.

This is because as the price of a product goes down, consumers can afford to buy more of it. For example, if the average consumer spends $100 per week on groceries, then as the price of bread goes down, they can buy more of it for the same $100 budget.

Bread is a staple food and most people would prefer to have some in their kitchen than none. As the price of bread goes down, consumers will tend to buy more of it to keep up with their normal consumption level.

The same applies to eggs: if they become cheaper, people will stock up on them. Consumers may even decide to eat one or two instead of just one depending on the decrease in price.

Electricity is similar: if it becomes cheaper, people will run more appliances and devices, using more electricity.

Rising

When the price of a good or service rises, consumers will demand less of it. This is because consumers need to balance spending on different goods and services.

If the price of eggs rises, then people will buy fewer eggs. This is because they will have to cut spending in another area to avoid overspending in the area of eggs. It is a way to maintain balance in their spending.

Manufacturers also respond to rising prices by producing more of a product. This is because they earn more money by producing more, so most try to meet that demand. There are sometimes limitations that prevent this, however.

For example, if it becomes too costly to produce electricity, then the company may not be able to produce as much of it due to cost constraints. This would cause the demand schedule for electricity to decrease.

Relatively flat

the demand schedules for such products as eggs, bread, and electricity tend to be

The demand schedule for most products tends to be relatively flat. This means that as the price of the good or service goes up, people will still want about the same amount.

People will only stop buying the good or service when it becomes too expensive for them. For example, if eggs became very expensive, people would find an alternative source of protein.

This is important to understand because companies that produce goods and services rely on revenue generated by sales. If sales do not increase, companies will face financial problems.

Bullet point: Exception: Demand for essential goods and services tends to be inelastic—or flat—which makes it particularly difficult for companies to raise prices without losing customers. Companies have to be careful when adjusting prices due to this elasticity of demand.

Smooth

the demand schedules for such products as eggs, bread, and electricity tend to be

When the demand for a product is smooth, that means that the demand is consistent over time. There are no sudden changes in demand for a product, like a heightened need for it.

Smooth demand happens when people need something consistently. For example, most people need food every day, so the demand for food is fairly smooth. Or, if someone buys a new car, they may keep it for several years, so the demand for cars is fairly smooth.

Factors that can influence the demand for a product include social trends, economic factors, and utility values. When any of these change, it can alter the overall demand of a product.

When the demand curve shifts or changes shape, it represents a change in the underlying factors driving consumer purchases of the good or service in question. A shift to the right indicates an increase in overall consumer purchases of the good or service.

Declining

the demand schedules for such products as eggs, bread, and electricity tend to be

The demand schedule for a product that is declining in demand is also a hard scenario to manage in the business world.

When the need for a product is going down, producers are advised to reduce production to match the new lower demand level. This way, they will have surplus inventory if the demand rises again, but not too much that they cannot sell it at a reasonable price.

Producers are also advised to find other uses for the product. If it is an ingredient, find another product that needs it and promote that instead.

If the product is no longer needed, try to reduce the cost of producing it or stop producing it all together- this will help save money and make room for other products that may be more in demand.

Rising

the demand schedules for such products as eggs, bread, and electricity tend to be

When the price of a good or service rises, consumers will tend to demand less of it. This is because the consumer can purchase less with a higher price, so they decide to buy something else instead.

This also applies to industries as a whole. When the cost of producing a good or service rises, industries will produce and sell less of it. This is due to competition in the market, as well as finite resources and personnel.

A rise in the price of eggs will lead to people buying fewer eggs, and farmers producing fewer chickens. A rise in the price of bread will lead to people buying another kind of bread instead, or not buying any at all. A rise in the price of electricity will lead to people using less of it, and companies switching to alternative sources or reducing consumption.

The demand schedules for such products as eggs, bread, and electricity tend to be downward-sloping.

Relatively flat

the demand schedules for such products as eggs, bread, and electricity tend to be

The demand schedules for most commodities tend to be relatively flat. This means that there are few price points at which demand is very high, and many price points at which demand is low.

At high prices, consumers will cut back on their consumption rather than pay a high price. At low prices, consumers will increase their consumption rather than paying a low price.

Consumers typically have a certain average income they need to meet their needs. When the price of a commodity such as electricity rises above that average, consumers will find alternatives. When the price of electricity falls below that average, consumers will return to using it.

The reason why this happens is because people have stable needs that must be met. Meeting those needs requires a certain level of the commodity, and no more than that level due to affordability issues. Any extra commodity is not needed nor wanted due to this fact.

Smooth

the demand schedules for such products as eggs, bread, and electricity tend to be

When the demand for a good or service is smooth, it means that the consumer demand does not fluctuate much. There are not very high or low points in consumer demand for a product like eggs, bread, or electricity.

When prices drop, consumers do not wait until the next price drop to buy the good or service. Instead, consumers keep buying at the current price as they need it.

This is important to note because when companies invest in resources and equipment for producing these commodities, they do not do so at their lowest demands. They prepare for the average demand of the product and invest in that amount!

Surprisingly, investing in higher amounts of production capacity for such products as eggs, bread, and electricity does not cost much more than average levels of production. Companies find an equilibrium where costs are balanced with sales to produce a steady income.

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