Question

5) List and define the three things that are unique about business demand.

6) Name and briefly define the three types of selective perception.

Answer 1

Three unique things about demand are:-

1. Demand has an inverse relationship with the supply of a product.

This means that demand is dependant on the supply and supply is dependant on the demand.

2. Demand has different form elasticity in demand.

This means that a number of product in a number of categories can all be differentiated from each other by using their elasticity of demand.

3. Shows the effect of diminishing marginal utility.

This means that with time and use, we start demanding less and less quantity of the same item to a point where we no. Longer use the product.

There are two types of selective perception:-

1. Perceptual vigilance.

Which means that people notice things such as advertisement and/or newspapers especially when. It has something that they want to buy.

2. Perceptual defence.

This means that people selectively choose to block out existing knowledge in the sense that it impedes their poi t of view about something, For example, smoker screens out any advertisement where they tell people the harms of smoking and its effect on outlet lugs.