d for a good or class of goods.
While it is true that marketing can help "create" demand for items by showing how a particular item addresses a need that the consumer did not formerly recognize, no amount of marketing can stimulate demand for items which the public truly does not desire or from which no long-term benefit is derived. An example of products which have failed despite strong marketing include the Edsel car in the 1950s and New Coke in the 1980s. Both of these products had considerable marketing resources behind them, but both failed.
Nonetheless, marketing can stimulate demand for products, or classes of products, which are not considered necessary in all markets. Cosmetics for women, scent products (perfume and cologne) for men and women, and luxury cars are examples of products which are enhanced by marketing campaigns associating personal success with the purchase of the product. There is obviously some demand for these goods independent of the marketing campaign, but marketing (including selecting the target market) no doubt enhances their success.
1a) Everyday life is influenced by economics in little ways. Interest rates, for example, are determined by the Fed and are based on economic forecasts. Banks then use those rates to determine what they charge (and pay) their customers. Companies then borrow money at those rates and, depending whether the rates are high or low, increase and decrease their prices accordingly. Even rent can be affected since the interest rate determines how much a landlord must pay back and thus how much renters must be charged to make a profit.
On a more personal level, each of us makes demand decisions each day based on our personal financial situation. Given a specific amount of disposable income, we determine our supply curves for a
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