When the price of a good changes (decreases), it becomes less expensive which allows consumers to
increase their satisfaction (purchase) for that good. Just the opposite happens when the price of a good
changes increases. When the price of a good changes (increases), it become more expensive which
changes the consumer satisfaction for that good causing the consumer to seek a substitution. This
concept is the substitution effect of the price change. In this discussion forum, identify a consumer
product that has decreased in price and discuss the increase in consumer demand for this product. What
have consumer substituted because of this decrease in price.
- Forecasting New Products and Services
Forecasting provides very useful projections for established products and services, but newly introduced
products and services have wildly different success results. Name and discuss at least one product and
one service that exploded with exponential increase in demand shortly after their introduction. What about
products and services (2) that have largely been ignored?