Question

The offering selected= The Agency RE

Explain in detail, the following for your offering:

A. Expected changes in future demand patterns for the offering
B. Explain the price elasticity for this offering

Answer 1

A.Expected changes in future demand pattern for the offering must be accounted into the overall sales budget and company should produce according to the expected changes into future demand pattern because it will help the company to match with its demand and it should also help the company to not produce excess or not produce lesser than what is being demanded from the market.

It should also help the company to meet the actual sales with the budgeted sales and it should not be losing out onto opportunity cost by holding out onto excess inventory.

B.Price elasticity for the offering would be when the demand for the product would be higher and the supplies would be lower than the prices would be higher in the nature, and when the demand for the product is lower and supply must be lower and prices should be kept lower in order to retain the customer.