...leather. Thus, Finking is going to provide the most stable, comfortable and excited exercise experience. The running shoe industry has a very competitive landscape. There are many shoes manufactures in the world, such as Nike, Adidas, and New Balance. However, Finking’s shoes have special designed treads and the unique materials, which can make Finking’s shoes more competitive. B. Through a combination of market research and data from pricing experiments, we estimate that at a price of $160, consumers would not demand any shoes; at a price of $140, consumers would demand 5,000 pairs; at a price of $120, consumers would demand 10,000 pairs, and so on. According to the demand equation of the functional form: P= a – b Q We can get: a = 160 b= △Q/△P = (160-140)/5=4 Thus: P = 160 – 4Q All the prices and demand are based on the market research regarding running shoes, such as Nike, Adidas, and Puma. Comparing the price with other competitors, Finking makes the assumption based on the average data. C. C (a) Assuming: a price of $100 per pair, consumers would demand 15,000 pairs of Funking’s running shoes each week. And...
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...Market Demand and Elasticity Tank Up is a local quick mart gas station on Route 12, a fairly busy highway most days of the week. Tank Up is the last station eastbound just prior to the entrance ramp to the expressway. This location benefits Tank Up business because drivers often stop in to fill their gas tank and grab a cup of coffee before beginning their journey on the expressway. To increase profits, I am evaluating a price change for coffee. Historically Tank Up sells approximately 300 cups of coffee per day. At $0.79 per cup, annual coffee revenue is $86,268. Options to increase revenue include a) an increase in sales prompted by a price reduction or b) an increase in revenue through a price increase. For the purpose of this evaluation, it is assumed all factors beyond cost per cup and consumer demand are held constant. The supply costs for coffee beans, creamer, cups and other supplies are not a factor in this assessment. Below are the factors considered. Price Elasticity of Demand As noted above, annual coffee revenues are estimated at $86,268. To evaluate price elasticity of demand, a calculation was required to determine if an adjustment in price (increase/decrease) resulted in a change in consumer demand. The first step was to evaluate the impact of increased sales because of price reduction. When reducing the price per cup 13% (to $0.69) sales increased 7% (320 cups per day). Although demand increased, annual revenue declined 7% ($5,897). This change...
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...3: Supply, Demand, & Government in the Markets 1. Using Microsoft Excel, draw a graph illustrating the supply and demand in this market. 2. What is the equilibrium Price and Quantity in the market? This is where the quantity demanded and the quantity supplied are equal. The corresponding price is the equilibrium price and the quantity is the equilibrium quantity. *Let us take the first line of data from the Spreadsheet as an example: Price- $200 Quantity Demanded- 1000 Quantity Supplied- 2200 Here there is an excess supply amount, so there are more computers than that are actually wanted. At this point, the sellers would recognize there are fewer buyers for their product at the current set price. Now they would attempt attracting buyers for the excess supply available by offering these goods at a lower price. By doing so, according to the law of demand, buyers will now purchase more of the computers and the supply overage will decrease until it eventually disappears. Now the market will reach the intersection point in which supply is equal to demand. *Now we can look at a different scenario in which the demand of computers are higher than the supply. Looking at the last line of data from the Spreadsheet: Price- $25 Quantity Demanded- 2750 Quantity Supplied-1150 This would display a price that is below the intersection point. Because there is such a high demand for the product, the consumer would be willing to pay more to obtain it. As the market price increases...
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...Supply, Demand & Government in the Markets Randall Jaeck Argosy University The graph above shows the equilibrium price and quantity of computers in the marketplace. The equilibrium is where the price and demand meet. For the graph above it is 1750 units and a price of $125. If left alone a market would naturally settle into equilibrium. With the market equilibrium price it ensures that the sellers willing to sell at that price and the buyers willing to buy at that price will get what they want. At equilibrium supply equals demand but in some cases the government will interfere with the market adding taxes, price ceilings and price floors. We will take a look at what happens to the market when these occur. First we will look at what would happen if the government imposes a special tax on these computers. If the government interferes with a taxation it would then force the sellers to raise their prices for those computers because the sellers want to maintain their profit margin. The supply curve would shift upwards by whatever the tax amount is. Sellers would sell less computers and if buyers still want these computers they will need to spend more for them because of the tax and the fact that since they now cost more and there would be less to sell. Sometimes governments impose a price ceiling which is an upper limit for the price of the computers, when a price ceiling has been implemented sellers cannot charge more than the ceiling price. If the...
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...Explain how changes in supply and demand impact on equilibrium price and quantity Market equilibrium is the situation where at a certain price, the quantity supplied and the quantity demanded are equal. Markets always tend towards equilibrium and, if excess demand or excess supply exists, the market will bid the price up or down until the equilibrium price is reached. The price mechanism determines the equilibrium in the market and consists of the relationship of supply and demand. The equilibrium price and quantity will be changed if there is a shift in either or both of the supply or demand curve. Market equilibrium occurs when the demand and supply curves intersect with each other. As shown in Figure 1, this is when the quantity demanded is exactly the quantity supplied. Figure 1 – Market Equilibrium Supply can be defined as the quantity of a good or service that all firms in a particular industry are willing and are able to offer for sale at different price levels at a given point in time. An increase in supply can be impacted by a range of factors. One of these factors is advantages in technology. If the technology that a firm uses develops, they will be able to make more of the good and therefore the supply will increase. An example of this is iPhones, their technology is constantly improving and therefore their supply will also increase. Another factor is having a good season. For example, if a firm produced mango and the weather was good, the firm would get a good crop...
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...Market structure refers to the physical characteristics of the market within which firms interact. It is determined by the number of firms in the market and the barriers to entry. The definition of monopolistic competition is “a market structure in which there are many firms selling differentiated products and few barriers to entry”. The market structure of Starbucks is a monopolistic competition. In the coffee industry, many producers and consumers exist, the goods and services are mixed, but firms are still able to differentiate their, products. Starbucks is a textbook example of a monopolistically competitive firm: many sellers, low barriers to entry, slight product differentiation. As an example of monopolistic competitive firm, Starbucks understands how that market structure works, thus giving them substantial profits in the past few years. Starbucks has managed to maintain its success even during unprofitable times with its other branches through customer loyalty, quality private goods, and knowing the labor market. Monopolistic competition also provides consumers with the greatest benefit of all: diversity in the world of coffee. Supply and demand analysis of Starbucks Price is a factor which affects Starbucks on both the demand and supply side. The price of coffee will determine how many individuals are willing to buy and will buy at a higher price. The company has to keep in mind the maximum price that the customer would be willing to pay or the reservation...
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...Demand and Supply of America Medicine Market Associated with the quality life that modern society people pursued, an excellent health care is always concerned no matter where people are. However, the medicine demand and supply are an indispensible part of the chain. So there is a medicine issue of demand and supply in America, which eventually has required US government intervention is of serious concern. Initially, from the article, it is can be explored that the demand of vital drugs like generic drug that is used to treat cancer, where shortage reports seem most critical and total number for drug shortage reached 232 in 2011 (The Economist, 2011). The factor caused this firstly is because of limited production capacity. So, as the demand for this type of medicines increasing, production lines are stretched to limitation. As a result, the shortage is caused while price goes up too. Another factor for America medicine shortage is the consequence of long run excessive production. The medicine firms are willing to produce more drugs in order to maximize profits. However, the pressure on production causes a severe drawback on medicine’s quality. The bacterial or fungal contamination will result in large proportion of rejects and lowering real quantity that can be traded to the medical market. Thus, the whole industry has to depend on a handful of manufacturers who are keeping hygienic rules strictly but providing less quantity of drugs, which gives rise to lacking medicine...
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...Abstract This paper analyzes the demand of Information Technology during different market conditions. This paper discusses the role of IT and its significance in the current world. It also discusses various market conditions that prevailed over the last few decades and their impact on IT. This paper mainly focuses on the recent recession and how is IT impacted and transformed during these conditions. Having discussed the history of IT in different market situations, this paper throws a light on future conditions and growth in the field of IT. DEMAND ANALYSIS OF IT IN DIFFERENT MARKET CONDITIONS Introduction Demand is an economic principle that tells us about consumers' want, readiness and their capability to pay a price for a specific good or service. It is a common belief that greater the demand, greater is the price of a good or service. But, what leads to the demand of a particular good/service is a complex analysis and is different for each good/service. Any business, before development or expansion, studies the demand for its product. This study of demand is a complex process. Based on this demand analysis report, a firm leadership would decide on extension or starting of the business. The demand analysis might help determine or justify a desire for expansion in a particular sector or just to assess the health of a particular sector. Even though the demand analysis procedure is performed differently based on the type of business or study, participants...
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...4.3 MARKET DEMAND Market demand curve is curve relating the quantity of a good that all consumers in a market will buy to its price. From Individual to Market Demand Table 4.2 | Determining the Market Demand Curve | (1) Price ($) | (2) Individual A (Units) | (3) Individual B (Units) | (4) Individual C (Units) | (5) Market (Units) | 1 | 6 | 10 | 16 | 32 | 2 | 4 | 8 | 13 | 25 | 3 | 2 | 6 | 10 | 18 | 4 | 0 | 4 | 7 | 11 | 5 | 0 | 2 | 4 | 6 | 5 4 3 2 Market Demand A B C 0 5 10 15 20 25 30 Summing To Obtain a Market Demand Curve The market demand curve is obtained by summing our three consumers’ demand curves DA, DB, and DC. At each price, the quantity of coffee demanded by the market is the sum of the quantities demanded by each consumer. At a price of $4, for example, the quantity demanded by the market (11 units) is the sum of the quantity demanded by A (no units), B (4 units), and C (7 units). Two points should be noted: 1. The market demand curve will shift to the right as more consumers enter the market. 2. Factors that influence the demands of many consumers will also affect market demand. The aggregation of individual demands in to market becomes important in practice when market demands are built up from the demands of different demographic groups or from consumers located in different areas. Elasticity of Demand Denoting the quantity of a good by Q and its price by P, the price elasticity of demand...
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...Marketing Mr. M Natrajan Paper: Market Demand / Potential – LUX Soap PRODUCT PROFILE • • • • • LUX is a global brand developed by Unilever. The range of products includes beauty soaps, shower gels, bath additives, hair shampoos and conditioners. LUX started as “Sunlight Flakes” laundry soap in 1899. In 1924, it became the first mass market toilet soap in the world. It is noted as a brand that pioneered female celebrity endorsements. As of 2005, Lux revenue is at 1.0 billion euros, with market shares spread out to more than 100 countries across the globe. Today, Lux is the market leader in several countries including Brazil, India, Thailand and South Africa. For years, LUX has been one of the India top soaps that offer a way to gain smooth and fair looking skin without worrying too much on how old the user is. LUX soap came from one of the biggest corporation in the India today, Unilever. LUX is a personal care brand owned by Unilever. LUX is primarily made from synthetic surfactants, as well as some vegetable oil based soap ingredients, such as sodium palm kernelate. LUX is formulated to be pH neutral, with a pH that is usually between 6.5 and 7.5. As paper title specify, market research is done for the LUX soap to estimate the current demand and market potential. Market research is the process through which one can indentifies the basic problems area relating the product demand, its potential and as conclusion strategies to enhance demand and potential within specified geographical...
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...Supply and Demand as it Relates to the Stock Market Supply and demand is one of the most important influences in any economic marketplace. In most industries the law of supply and demand is an accepted theory to explain the price of products and services. One industry that overlooked the significance of the law of supply and demand in the past is the stock market. Experts attributed the Stock Bubble of the 1990s to an overly simple theory. It was believed that rising prices in stocks were caused by an underlying rise of companies’ value. The price of stocks in the 1990s is today better understood as derived from a shortage of equities in the market (Oswin, 2005). The law of supply and demand is a fundamental concept in economics that explains market factors such as the quantity of a product or service demanded by consumers, the supply of products or services that suppliers are willing to produce and the relationship between supply and demand to create market equilibrium. The law of supply and demand also tries to explain what conditions in the market create changes in quantity demand and supplied in the market (Colander, 2008). In his essay, The Relative shortage of Equities, Oswin (2005) describes some of the conditions that affect stock market activity and explains the theories behind the demand and supply of equities, which drive the prices of the market. According to Oswin (2005), the law of supply and demand is the cause behind bear and bull markets. Investors...
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...Final Project Part I Milestone One: Supply, Demand, and Market Equilibrium Click Link Below To Buy: http://hwaid.com/shop/final-project-part-i-milestone-one-supply-demand-and-market-equilibrium/ Apple is the Company and the product is IPhone 6 3-2 Final Project Part I Milestone One: Supply, Demand, and Market Equilibrium This milestone, which covers Section II of Final Project Part I, should be a paper structured as follows: 1. Describe the price elasticity of supply or demand for your product or service. 2. Explain how two nonprice factors impact the demand of your chosen product or service. 3. Explain how two nonprice factors impact the supply of your chosen product or service. 4. Define the industry and the market equilibrium associated with the product or service. 5. Predict the effect of changes in supply and demand on the market equilibrium. 6. Describe the decisions related to supply and demand for the product or service that you would make based on the predicted changes in supply and demand on the market equilibrium. 5-2 Final Project Part I Milestone Two: Production and Costs This milestone, which covers Section III of Final Project Part I, should be a paper structured as follows: 1. Describe three key inputs (or factors of production) and fixed and variable costs involved in the production of your chosen product or service. 2. Analyze the factors that impact your choice of inputs to produce the chosen product or service. 3. Examine the production...
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...ECO 202 M5 Assignment 1: LASA 2: Supply and Demand in a Global Market Click Link Below To Buy: http://hwaid.com/shop/eco-202-m5-assignment-1-lasa-2/ Justify your answers using economic concepts and ideas as they apply. Each response should be between 100-200 words. Questions: 1. The demand for labor is said to be a “derived” demand. What is the meaning of a derived demand? How does this concept help to determine the demand for labor? 2. What are some of the factors that determine the supply of labor in a market? What significant factors have changed the supply of labor over the last twenty years? 3. How does a firm determine its prices and the quantity of labor required in the resource market during a specific period? 4. Why do income inequalities exist? How are income inequalities measured? How have income inequalities changed from 1980 to the present? 5. What is the role of the U.S. government, in terms of dealing with the problem of income inequalities? What are the arguments, for and against, government involvement in this area? 6. Why do nations trade? What is meant by the concept of “Comparative Advantage”? Could a nation be better off economically, if it practiced an isolation policy? 7. The United States has had a significant trade imbalance for several years. What are the problems associated with having a negative trade balance? What can be done to correct the imbalance? 8. How are exchange rates determined? What is the significance of currency...
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...Package "Food Containers Markets in China: Industry Growth, Economic Trends, Demand, Capacity, Analysis Report" Report Overview China's demand for Food Containers has grown at a fast pace in the past decade. In the next decade, both production and demand will continue to grow. The Chinese economy maintains a high speed growth which has been stimulated by the consecutive increases of industrial output, import & export, consumer consumption and capital investment for over two decades. This new study examines China's economic trends, investment environment, industry development, supply and demand, industry capacity, industry structure, marketing channels and major industry participants. Historical data (2004, 2009 and 2014) and long-term forecasts through 2019 and 2024 are presented. Major producers in China are profiled. Browse Complete Report at: http://www.researchbeam.com/food-containers-in-china-market The primary and secondary research is done in China in order to access up-to-date government regulations, market information and industry data. Data were collected from the Chinese government publications, Chinese language newspapers and magazines, industry associations, local governments’ industry bureaus, industry publications, and our in-house databases. Interviews are conducted with Chinese industry experts, university professors, and producers in China. Economic models and quantitative methods are applied in this report to project market demand and industry trends...
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...ECO 202 M5 Assignment 1 LASA 2: Supply and Demand in a Global Market https://homeworklance.com/downloads/eco-202-m5-assignment-1-lasa-2-supply-and-demand-in-a-global-ma Justify your answers using economic concepts and ideas as they apply. Each response should be between 100-200 words. Questions: 1. The demand for labor is said to be a “derived” demand. What is the meaning of a derived demand? How does this concept help to determine the demand for labor? 2. What are some of the factors that determine the supply of labor in a market? What significant factors have changed the supply of labor over the last twenty years? 3. How does a firm determine its prices and the quantity of labor required in the resource market during a specific period? 4. Why do income inequalities exist? How are income inequalities measured? How have income inequalities changed from 1980 to the present? 5. What is the role of the U.S. government, in terms of dealing with the problem of income inequalities? What are the arguments, for and against, government involvement in this area? 6. Why do nations trade? What is meant by the concept of “Comparative Advantage”? Could a nation be better off economically, if it practiced an isolation policy? 7. The United States has had a significant trade imbalance for several years. What are the problems associated with having a negative trade balance? What can be done to correct the imbalance? 8. How are exchange rates determined? What is the significance...
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