Market Demand Essay Example for Free

Market Demand EssayThe figuring above shows that Bonia sort out practice elastic demand for the previous 10 historic period. This is mainly due to impregnable competition among competitors. Bonia Group, which target the mid-high price range market encounter a few international branding competitor like Calvin Klein, DKNY, Paris Hilton, Armani Ex switch over and Lacoste in the market and were highly competitive for years.Bonia Group was rede to avoid price increase for the coming years as sales figures for the past 10 years show that Bonia Group were in elastic demand. In order to increase yearly sales amount, the Group could actually remain or decrease price as in elasticity demand, sales harvest-home is oppositely proportional to price. They are always encourage to remain or decrease the price, and at the homogeneous time remain the quality and material of goods to boost up the sales quickly and to show spry results.Besides that, the mid-high price range in Bonia Group show that their products are actually inferior goods. In order to overcome the coming economic crisis and recession, lower down the price range to normal goods is some other way to avoid for profit losing. Economists predict that beginning from this year, it would be another recession coming ahead. During recession, the add up salary for population will decrease and unemployment increase. People will try to find out replacing for expensive goods. Thus, Bonia as an inferior goods brand will encounter sales decrease during recession. It is good to change from inferior goods to normal goods so that they can still gaining profit during recession.