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Here are a few simple examples. If demand in a market is decreasing then management has to decide how are they going to respond. Should they lay off workers? Should they reduce production? Should they cut their prices and try to maintain sales volume? Is this a short term situation requiring minimal change or is this long-term requiring a new strategy.
Likewise if demand is rising management must make decision. Can production be increased? Should they hire additional staff? Should prices be raised to offset the increased demand in the short term? Should a new factory be built to meet even more growth in the future?
Demand is such an integral part of any business that whether it moves or even stays the same it is part of most managerial decisions.
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