Why Is Product Development a Long and Expensive Process

question 47

Essay

Why is product development a long and expensive process?

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Definitions:

Cross-price Elasticity of Demand

A measure of how the quantity demanded of one good responds to a change in the price of another good.

Quantity Demanded

The specific amount of a good that consumers are willing and able to buy at a given price.

Income Elasticity of Demand

A measure of how much the quantity demanded of a good changes in response to a change in consumers' income.

Goods and Services

The physical items (goods) and activities or benefits (services) that are produced and provided to satisfy consumers' needs and wants.