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Chapter 1. What are the REELECTION CONSUMPTION. unit of measure of supply and demand
1.3. 1.Maximum consumption
ОглавлениеBased on statistical data (or on basis common sense) is determined by the maximum possible acquisition of the goods (measured in units that characteristic of this product) for a specified period of time (week, month, year). This quantity we will call the maximum consumption (Pmax)
When choosing the amount of maximum consumption should take into account two types of factors.
The OBJECTIVE restriction and FORMAL restriction.
1. Objective restrictions limit the maximum consumption is that it is limited to physiological causes (for example, a person can’t eat more than 10 cakes in a day) or technical reasons (this car consumes 25 miles/gallon. These parameters can be chosen so that the probability of their change for a short period of time will be small.
Certain goods are restricted to natural causes. For example, the maximum of the index of goods – “park the car in a period of 1 hour” is limited to one hour.
2. A formal limit of maximum consumption – consist that its value is arbitrarily is assigned by the researcher or for harmonization (standardization) with other stakeholders (e.g. maximum consumption of cakes one person 100 cakes per day). Further consideration will show that unrealistically high values of maximum consumption does not affect the main results, does not change the resulting estimates, but complicates the calculations by increasing or decreasing the values of the processed variables.