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Secondly, consumption submits to a principle of the decreasing limiting Utility, according to which subsequent units of the concrete goods Bring ever less satisfaction. For example, the second TV in The house "is less useful", than the first, as basic needs Are satisfied, the third is even less etc. Therefore the buyer gets Additional units under condition of decrease in their price.
Thirdly, action of the law of demand is connected with an income effect expressed
In possibility for the buyer at constant the income and other equal conditions
To get more than the given goods. And on the contrary, higher price leads
To decrease in consumer demand.
The substitution effect is connected with an income effect. It consists that
The high prices for the goods induce the buyer to replace its acquisition
Purchase of cheaper goods similar to destination.
The reasons calling action of the law of demand, are especially actual at
Manufacture and the offer to realisation of new production. At the high price on
It, presence at the buyer and in the market of production similar to destination, and
Also decrease in real incomes as the population, and industrial
The enterprises, consumers of an industrial and technological production,
Demand for new production can not arise or fall below the critical
The size covering expenses for its manufacture, which at the initial stage
Manufactures are usually enough high in comparison with expenses on
Manufacture of traditional production.
9.4. Demand factors
For demand management to the enterprise, the manufacturer of new production,
It is necessary to know the factors influencing size and character of demand and
Named by demand determinants. We will notice that the determinants influencing on
Demand for innovations, considerably differ from demand factors on
Production traditionally offered consumers.
All factors of demand for new production can be divided on internal,
Concerning activity of object of the analysis, and external, connected, in
The core, with features of functioning of an environment (tab. 9.4).
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