Monday, June 24, 2019

Why does a country's imports not completely measure the market potential for a product?

The imports
of a product into a country cannot provide a very accurate market potential of the product.
There are several reasons why this is the case.

The market potential of a
product manufactured by a firm depends on the total demand of the product and the total supply
of the product.

The quantity demanded of any product by customers is not
constant. It varies with the price of the product; a decrease in price usually increases the
quantity demanded. When a product is imported into a country there...

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