2006-07-26 04:33:32 · 3 answers · asked by gemg 1 in Social Science ➔ Economics
Depends on the form and value of the bonus
Generally might increase demand from consumers. Supply is up to the controlling organization to manage.
2006-07-26 04:38:16 · answer #1 · answered by Anonymous · 0⤊ 1⤋
Not at all conditions this can work. This depends on which part of the product life cycle the bonus is given. If you are closing the product and for diversification you are giving the bonus, on hearing the same, there will be no effect on the demand. On the other hand, for sales promotion, on launching of a product of advertisement this is done, this will increase the demand. There is will slight increase in demand when this is done in the mid life of the product.
VR
2006-07-26 11:40:41 · answer #2 · answered by sarayu 7 · 0⤊ 0⤋
If the financial bonus is based on the purchase, it can either be included as (1) an increase in income or (2) a decrease in price. Equilibrium shifts appropriately.
2006-07-26 11:49:33 · answer #3 · answered by Veritatum17 6 · 0⤊ 0⤋