... firm, such as price, advertising, packaging, brand name, and quality. One of the firm's influences on the demand for a product is price; the Law of Demand states that when the price of a good rises, the level of demand for that good will fall * As less people are now able to buy the good based on their income * As more people switch to substitute goods which now may appear more attractive given their relative price and when the price falls, demand for that good will rise * As more people are now able to buy the good based on their income * As more people switch from substitute goods now may appear less attractive given their relative price Ceteris paribus - other things being equal Every producer tries to out guess the market, some with better research, and results, than others. As they make predictions about sales. They adjust their production, ...

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