StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

What High Prices for Tea and Coffee - Essay Example

Comments (0) Cite this document
Summary
This paper outlines that a decrease in the price of mobile phones will not cause a shift in the demand curve. Instead, it will cause an expansionary movement along the demand curve. A decrease in price from P to P1 will increase the demand for mobile phones from Q to Q1. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.7% of users find it useful
What High Prices for Tea and Coffee
Read TextPreview

Extract of sample "What High Prices for Tea and Coffee"

Download file to see previous pages From this paper, it is clear that the quantity demanded will decrease from Q to Q1 causing the price to also fall from P to P1. However, next month, when prices are anticipated to fall, people will spend more on mobile phones due to lower prices causing the demand curve to shift on the right. This will result in an increase in the quantity demanded followed by an increase in price. A fall in the price of a call made from a mobile phone will cause the demand for mobile phones to increase the usage of mobiles will now become comparatively economical. Consumers will prefer mobile phones over other substitutes; in this case, a landline is the closest substitute, due to lower prices of the call made from a mobile phone. This change will shift the demand curve to its right causing the quantity demanded of mobile phones to rise as shown in the graph above.
Due to an increase in the price of a call made from a landline, the demand for landline phones will decrease. People will shift to cheaper alternatives, in this case, mobile phones. Since using the landline is now comparatively costly, people will tend to switch to mobile phones to avail lower prices. This can also be described as the relationship between substitute goods in which one prefers to shift to an alternative due to increase in prices of the existing commodity or service. Therefore, demand for mobile phone will again shift to the right as depicted in the diagram above. Yes, part (a) of this question illustrates the law of demand as the number of mobile phones demanded was solely affected by the decrease in the price of the mobile phone itself. Law of demand can be best described as the inverse relationship between the price of the good and quantity demanded.  ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“What High Prices for Tea and Coffee Essay Example | Topics and Well Written Essays - 1500 words”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1430334-multiple-choice-questions-case-study-what-high-prices-for-tea-and-coffee
(What High Prices for Tea and Coffee Essay Example | Topics and Well Written Essays - 1500 Words)
https://studentshare.org/macro-microeconomics/1430334-multiple-choice-questions-case-study-what-high-prices-for-tea-and-coffee.
“What High Prices for Tea and Coffee Essay Example | Topics and Well Written Essays - 1500 Words”, n.d. https://studentshare.org/macro-microeconomics/1430334-multiple-choice-questions-case-study-what-high-prices-for-tea-and-coffee.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF What High Prices for Tea and Coffee

Marketing and Brand Management: UK Coffee Industry

As the 2005 sales of instant coffee indicate, the sub-sector is further divided between regular, premium freeze-dried, decaffeinated, specialty, super-premium, powder, and economy or flavored coffee. Among these sub-categories, specialty coffee exhibited the highest growth rates overall. The dominance of instant coffee is attributed to a combination of aggressive marketing and branding campaigns by brand manufacturers, as well as the price consciousness and brand loyalty characteristic of coffee drinkers. However, instant coffee growth rates lag behind ground and roast, increasing only by 11.1% from 2003-2005, compared to 13.6% for the latter, which can be attributed to the development of new pod technologies and the decreasing pr...
8 Pages(2000 words)Term Paper

History of Gas Prices and their Effect on the Economy

The relation of inflation within a society with the ever-changing oil and gas prices is pretty much significant and one must understand that there is a strong bond present between the two. This strong linkage allows for prices to shoot up whenever there is a sudden upward trend experienced in the oil and gas prices and whenever the gold rates have increased on the global front. With so much at stake and economies coming to a standstill with the uprising trend in the oil and gas prices on a global level, one can only expect problems coming to the fore of the common man and woman present on the street. The worst possible explanation given by experts in the field of oil and gas prices’ regimes is that these are done to benefit...
9 Pages(2250 words)Coursework

Starbucks Coffee Company

In this connection, Beverly J. Davis (2007), an associate professor at the College of Technology in Lafayette and Kokomo says of Starbucks "The founder expanded his Seattle coffee shop into a huge enterprise and made it appealing to the average American. He was able to recognize that cafés were a strong trend in Europe and was able to pick up on the weak signal that Americans, despite their fast-paced lifestyle, were eager to embrace the idea of slowing down enough to visit a coffee shop, bookstore or library to connect with other people ” Davis further says in order for a fad to become a trend, it must appeal to the mainstream, be accessible to all, be easily understandable to the average person, be easy to obtain an...
10 Pages(2500 words)Case Study

Element of the Columbine High School Shooting

The morning of Tuesday, April 20, 1999, was a beautiful spring day and it seemed to be a regular day for Columbine High School as far as anyone knew. Students were coming to school as usual and no one suspected that it would be the longest day in the history of this high school. The parking lot was filled with the usual BMWs and Hummers of the football players and those students who were on the outside of the popular kids were being teased just like any other day. No one noticed anything different in the beginnings of that morning and no one really worried about anything. It is assumed that students had breakfast before they came to school and many were standing around waiting for classes to start and maybe smoking cigarettes as t...
12 Pages(3000 words)Case Study

Oil Prices by OPEC and Market Fundamentals

Market failure is defined as the inefficient allocation of resources by the market, the free market is considered to optimally prices and resources in the production of goods and services, and this is because the price and quantity produced are determined by market forces which include the demand and the supply. The control of prices by a firm or an organization in the market results in market failure, therefore OPEC leads to market failure due to its nature in the market.

OPEC was formed in 1960 by 5 oil-producing countries which include Venezuela, Saudi Arabia, Kuwait, Iran and Iraq, The aim of this organization was to unify petroleum-producing countries in order to realize fair and stable prices of oil .other oil-pro...
6 Pages(1500 words)Report

Investigation of the Transient Behaviour of Earthing Systems Subjected to High Impulse Currents

The effect of the transient voltages and currents on the earthing systems has a great influence on the performance and evaluation of the substation equipment against lightning overvoltage. While the characteristics of the earthing system under steady-state depends on the electrode design and soil prosperities alone, the characteristics of the earthing system under impulse currents depends on the magnitude and shape of the impulse current. The experimental setup for the impulse tests on earthing systems has been designed with an impulse generator, voltage and current transducers and different types of earthing systems. The impulse tests with impulse voltages ranging from 500 V to 4 kV have been carried out and the impulse resistanc...
136 Pages(34000 words)Dissertation

Insolvent Periods of High Sales Growth

...Question Many business fail through poor cash flow, even whilst their published accounts show a profit on trading activities. Explain why this might be the case and explain what managers can do to avoid becoming insolvent through periods of high sales growth. Answer It is an established truth that many businesses fail through poor management of cash flow despite the fact that their published accounts show a profit on their trading activities. This is mainly due to the fact that they do not keep a close check on their cash flow and that the cash outflow from the business is more than the cash inflow into the business. Increased cash outflow over the cash inflow is mainly due to many reasons which require a close look into the affairs...
8 Pages(2000 words)Assignment

Should Shoe Companies Be Able to Give away Free Shoes and Equipment to High School Athletes

Today statistics of October 2013,  284,000 high school boys and 209,000 high school girls are playing soccer, 1 million are playing football, and 500,000 are playing basketball (“Youth Sports Statistics”).  These athletes need shoes and equipment, which are expensive.  It is no secret that under current economic condition many families are struggling to pay bills. It is as well not hard to understand that if parents are struggling to pay bills they will not be able to spend funds to pay for the items that their children need to use in sports. In 1906, a non-profit association by the name National Collegiate Athletic Association (NCAA) was formed that now regulates athletes of different institutions inclu...
7 Pages(1750 words)Term Paper

High-Context and Low-Context Culture

...People from high-context and low-context cultures may find it difficult to understand one another. Choose 2-3cultures as examples and explain why potential difficulties might arise. Name University Introduction The current world is considered as a global village. Technology has made it possible for people from different nationalities, race, and cultural background to come much closer to one another. Besides, it is possible for people from these diverse origins to work together and increase their levels of communication on a daily basis. These approaches are exciting because they help people interact and learn different cultures and social aspects from the diverse cultures and the people representing the diversity. However...
6 Pages(1500 words)Assignment

Business Strategy of AMT Coffee

..., the sales growth rate of the organization has reduced slightly during that period (Blewitt, 2008, p.72). Therefore, it can be stated that the management of AMT coffee has strongly focused on only differentiation strategy in order to offer high quality differentiated and diversified products and services at cost-based price. Different Strategic Development Directions It is clear from the above mentioned generic strategy option that the management of AMT coffee has strongly focused on the differentiation generic strategy. Therefore, the organization has to change its strategic direction by looking into the unfavourable economic environment of the country (Blythe, 2012, p.48). The global recession and recent financial crisis of UK has...
9 Pages(2250 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic What High Prices for Tea and Coffee for FREE!

Contact Us