Why should I choose AnalystNotes?

Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.

Subject 8. Technological Developments PDF Download

Businesses and industries are affected by technological developments. It is, however, impossible to quantify these impacts without making assumptions about the future. These assumptions should be evaluated using scenario and sensitivity analysis to develop a range of earnings outcomes.

Technological developments can affect demand for a product, the quantity supplied of a product, or both. When a technological development results in a new product that threatens to cannibalize demand for an existing product, a unit forecast for the new product combined with an expected cannibalization factor can be used to estimate the impact on a future demand for the existing product.

It's equally noteworthy that technological developments can affect the demand and supply of a product. The supply curve will move to the right if innovation results in lower manufacturing costs. Suppose innovation results in the development of better, more attractive products, demand for existing products will shift to the left.

User Contributed Comments 0

You need to log in first to add your comment.
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

My Own Flashcard

No flashcard found. Add a private flashcard for the subject.

Add

Actions