Demand Fluctuation
Demand fluctuation refers to the changes in the quantity of a product or service that consumers are willing to purchase over time. These changes can be influenced by various factors, including seasonality, economic conditions, and consumer preferences. For example, the demand for ice cream typically increases during the summer months and decreases in winter.
Businesses must adapt to these fluctuations to maintain profitability. They may adjust their production levels, inventory, or pricing strategies based on anticipated changes in demand. Understanding demand fluctuation helps companies like retailers and manufacturers make informed decisions to meet consumer needs effectively.