Demand-pull theory explained

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]}

See also

• Demand-pull inflation
• Quantity theory of money
• Cost-push theory

Notes and References

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