The five demand states are as follows: lateness, absenteeism, high turnover, low morale, and job dissatisfaction. Each of these demand states has different underlying causes and can lead to different consequences for businesses. Lateness is often caused by poor time management on the part of employees and can lead to lost productivity and decreased customer satisfaction. Absenteeism is usually caused by personal issues such as illness or family commitments and can result in a loss of revenue for businesses. High turnover is often caused by poor working conditions or a lack of opportunity for advancement and can lead to a shortage of skilled labor. Low morale is typically caused by a lack of appreciation or recognition from employers and can result in decreased productivity and increased employee turnover. Job dissatisfaction is usually caused by a lack of challenge or interest in the work itself and can lead to lowered job performance and engagement.
Need: A need is something that is essential for survival. An individual will be willing to pay any price for a good or service if it is needed for survival. For example, an individual will pay any price for food if they are starving. Want: A want is something that an individual would like to have but does not need. An individual will only be willing to pay up to their willingness to pay for a good or service. For example, an individual may want a new car but only be willing to spend $20,000 on it. Preference: A preference is when an individual has multiple options and chooses one option over the others because it better meets their needs or wants. An individual will only be willing to pay up to their willingness to pay for the preferred option. For example, someone may prefer one type of ice cream over another because they think it tastes better even though both cost the same amount. Aversion: An a version occurs when an individual does not want a good or service and would actually pay to avoid having it. For example, someone may be afraid of heights and thus would gladly pay money not to go skydiving.”Indifference:” Indifference occurs when an individual has no preference between two options; they are indifferent towards both options. In this case, the person would be equally likely to purchase either option and would only do so if the price was right.”
In microeconomics, derived demand refers to the relationship between two goods or services. Specifically, it is the amount of one good or service that a producer demands in order to produce a given amount of another good or service. For example, if a company wants to produce 100 widgets, it will need to purchase 100 units of input A and 50 units of input B. In this case, the company’sdemand for input A is said to be derived from its output level (i.e., 100 widgets).
The notion of derived demand can also be applied to consumers’demand for goods and services. For example, if a consumer wants to purchase a new car, she will likely also need to buy gasoline and car insurance. In this case, her derived demand for gasoline and car insurance is based on her decision to purchase a new car.
1. Lack of awareness: Consumers may not be aware of a product or service that could meet their needs. This can happen when there is little to no marketing or advertising for the product/service, or when it is new to the market and consumers are still learning about it.
2. Inaccessibility: A product or service may be available, but not easily accessible to consumers. This could be due to geographical factors (e.g., a store is only located in certain parts of the country), or logistical factors (e.g., a website is difficult to navigate).