Show the importance of demand forecast, Managerial Economics

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Q. Show the importance of Demand forecast?

Demand forecast for a particular commodity furthermore offers recommendations for demand forecast of associated industries. For example the demand forecast for vehicle industry aids the tyre industry in computing the demand for two wheelers, three wheelers and four wheelers.

Significance for the government: At the macro-level, demand forecasting is valuable to government as it aids in determining targets of imports and exports for different products and preparing for international business.


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