"All else held constant" is the major problem facing all methods of estimating the demand for...

Question

"All else held constant" is the major problem facing all methods of estimating the demand for business products. Compare and contrast how the marketing and economic approaches deal with this problem. 2 pages,Due 6pm EST. on August XXXXXXXXXX.

Robert · Accepted Answer

Demand function of a product shows the relationship between quantities demanded of that product and factors affecting demand i.e. it represents how quantity demanded of a product responds to change in factor affecting demand. There are many factors affecting demand of a business product. The most important factor affecting demand of a product is price of that product; we usually find negatively relationship between quantity demanded of a good and price of that good. The other factors affecting demand of a business product are; 
1. Consumer income: for normal goods, the income is positive i.e. with increase in income, demand rises whereas with fall in income demand. 
2. Price of substitute good: if price of substitute good rises, demand of given product would rise whereas if price of substitute goods falls, demand of given good would also fall.
3. Price of complement good: price of complement good and demand of given good are inversely related i.e. if price of complement good rises, demand of given product would fall whereas if price of s complement good fall, demand of given good would also fall
4.  Taste & preferences: A good having preferred by many people would have higher demand.
5. Expectation: If consumers expects price to in the future,

"All else held constant" is the major problem facing all methods of estimating the demand for business products. Compare and contrast how the marketing and economic approaches deal with this problem....

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