Demand-pull theory

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For demand-pull inflation, see demand-pull inflation.

In economics, the demand-pull theory is the theory that inflation occurs when demand for goods and services exceeds existing supplies.[1] According to the demand pull theory, there is a range of effects on innovative activity driven by changes in expected demand, the competitive structure of markets, and factors which affect the valuation of new products or the ability of firms to realize economic benefits.[2][3]

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References[edit]

  1. ^ O'Sullivan, Arthur; Sheffrin, Steven M. (2003) [January 2002]. Economics: Principles in Action. The Wall Street Journal:Classroom Edition (2nd ed.). Upper Saddle River, New Jersey 07458: Pearson Prentice Hall: Addison Wesley Longman. p. 341. ISBN 0-13-063085-3. Retrieved May 3, 2009. 
  2. ^ Hartl, Jochen; Roland Herrmann (July 2006). "The Role of Business Expectations for New ProductIntroductions: A Panel Analysis for the German Food Industry". The Role of Business Expectations for New Product Introductions. Journal of Food Distribution Research 37(2). Retrieved 2009-05-05. 
  3. ^ Popp, David (David). "Induced Innovation and Energy Prices". The University of Kansas. Retrieved 2009-05-05.