Consumer Behaviour and Market Constraints on the Enterprise

  • Dudley Jackson
Chapter

Abstract

At the end of Chapter 5 we left enterprises confronting the problem that they cannot charge any mark-up they wish to without this affecting the quantity which they can sell: price and quantity sold are interdependent, so this chapter is about the market constraints which consumer (or customer) behaviour imposes on enterprises. This constraint can be expressed in a (downward-sloping) demand curve, which effectively limits the mark-up by forcing on the enterprise a choice between price charged (mark-up) and quantity sold: the higher the one, the lower the other.

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Copyright information

© Dudley Jackson 1982

Authors and Affiliations

  • Dudley Jackson
    • 1
  1. 1.University of Aston Management CentreUK

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