'The demand for goods and services is often influenced by advertising or involves choices based on impulse. This means that the economic theory of demand is irrelevant.'
2007-01-16 13:54:20 · 5 answers · asked by alikHardin 1 in Education & Reference ➔ Homework Help
No,
Although my knowledge of economics is limited, I would have to say although that does play a part, demand playes a bigger part.
Example, you have to eat. In most cases people would spend what little cash they had on food rather than an impulse purchase of something else.
2007-01-16 14:03:01 · answer #1 · answered by footynutguy 4 · 0⤊ 0⤋
Is this not a contradiction?? Which theory of demand are you talking about anyway?
Advertising and impulse choices feed through to demand in the micro economy and therefore may influence it but people's demand for goods and services is inherent and certainly not irrelevant.....
2007-01-17 10:26:37 · answer #2 · answered by Charlotte C 3 · 0⤊ 0⤋
I agree with the first sentence. However, I disagree with the second sentence. Surely advertising (and to a lesser extent impulse) creates "demand"?
2007-01-16 22:04:26 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I think the question hidden behind this statement is 'to what extent is the economic theory of demand relevant. Of course it is relevant, otherwise they would not state it.
2007-01-17 11:40:26 · answer #4 · answered by Anonymous · 0⤊ 0⤋
If demand wasn't relevant then why would people advertise?
2007-01-19 19:42:22 · answer #5 · answered by RichardLeB 2 · 0⤊ 0⤋