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Business/Investing The 2006-2011 World Outlook for Manufacturing Computer Peripheral Equipment Excluding Storage Devices and Computer Terminals

Posted on 2010-03-16




Name:Business/Investing The 2006-2011 World Outlook for Manufacturing Computer Peripheral Equipment Excluding Storage Devices and Computer Terminals
ASIN/ISBN:0497052881
Language:English
File size:684 Mb
ISBN: 0497052881
File Type: PDF
Other Info: Icon Group International, Inc.; 199 Pgs; Publication Date : 2005-04-05; 1.42MB
   Business/Investing The 2006-2011 World Outlook for Manufacturing Computer Peripheral Equipment Excluding Storage Devices and Computer Terminals



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The 2006-2011 World Outlook for Manufacturing Computer Peripheral Equipment Excluding Storage Devices and Computer Terminal

WHAT IS LATENT DEMAND AND THE P.I.E.?

The concept of latent demand is rather subtle. The term latent typically refers to something that is dormant, not observable, or not yet realized. Demand is the notion of an economic quantity that a target population or market requires under different assumptions of price, quality, and distribution, among other factors. Latent demand, therefore, is commonly defined by economists as the industry earnings of a market when that market becomes accessible and attractive to serve by competing firms. It is a measure, therefore, of potential industry earnings (P.I.E.) or total revenues (not profit) if a market is served in an efficient manner. It is typically expressed as the total revenues potentially extracted by firms. The “market” is defined at a given level in the value chain. There can be latent demand at the retail level, at the wholesale level, the manufacturing level, and the raw materials level (the P.I.E. of higher levels of the value chain being always smaller than the P.I.E. of levels at lower levels of the same value chain, assuming all levels maintain minimum profitability).

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