Scott Olson / Getty Images Keynesian economists believe that the primary factor driving economic activity and short-term fluctuations is the demand for goods and services. The theory is sometimes ...

Lower prices mean reduced supply all else being ... The law of supply and demand reflects two central economic principles that describe the relationship between price, supply, and demand.

The demand curve illustrates what's known in economics as the law of demand ... There is an inverse relationship between price and demand, meaning that when one rises, the other falls.

In fact, whether you own a manufacturing company or small-business retail store, you most likely know more about derived demand meaning than ... according to Economics Help.org.

Can You Predict Demand Elasticity? As with many things in economics and investing, predicting demand elasticity is not an exact science and can be quite difficult. However, businesses can ...

An elastic economic factor changes relatively easily ... Elasticity is driven by the principles of supply and demand, meaning the higher the demand for an item, the more elastic its price is.