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

Supply and demand: Markets, Prices and price setting - Case Study Example

Comments (0) Cite this document
Insert name Name of institution Name of professor Date Supply and Demand: Markets , prices and price setting. The coffee market. Demand is the willingness and ability to buy at a particular price and at a particular period holding other factors constant…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97.1% of users find it useful
Supply and demand: Markets, Prices and price setting
Read Text Preview

Extract of sample "Supply and demand: Markets, Prices and price setting"

Download file to see previous pages Assuming this will have an effect on the taste and preferences of the consumer which is a factor that affects demand of a product. A negative change in the preference will reduce the quantity demanded of the commodity. There will be a reduction in supply and price as the producers try to win back the loss of customers who are losing appeal in the unfiltered coffee. If consumers buy less of unfiltered coffee the demand curve will shift to the left this reduces the quantity and price of unfiltered coffee. Also the health issue of unfiltered coffee will reduce the number of coffee users as they will turn to using other available but better beverages which are free of cholesterol. This will have an impact on the quantity of unfiltered coffee imported into that country and since the amount of coffee being consumed is also reducing. This subsequently will force the retailers to reduce the price they charge for the unfiltered coffee for their products shall have lost a lot of market and demand. b.) When the coffee plants from major producing countries are affected by drought. This is a change in the weather conditions which is a factor that affects the supply of a product. Harsh weather conditions will reduce the output of the coffee from these countries. There will be a reduction in the amount of coffee supplied to the market. The supply curve will shift to the left. ...
This will impact the general quantity of coffee supplied in that country in that it will be dismal and in that case the price will rise since the several users will be there but the supply is low (Karl). c.) The price of donut decreases. Assuming that donuts are complimentary goods to coffee. Then when the price of a complimentary good decreases then the price of the other good decreases. In our case when the price of a donut decreases the amount of coffee demanded also decreases. This phenomenon will lead to a shift in the demand curve to the left. The shift will lead a reduction in the price and quantity of the good demanded. In other words, in case of those coffee drinkers who normally take coffee with donuts, and the price of donuts decreases, the consumption of coffee will go up hence the demand. This will make the prices of coffee to shoot since many people will be willing to buy more coffee to take with the extra donuts they can now get since they are now sold to them at lower prices. d.) In order to protect growers and have better working conditions for workers , a price floor has to be implemented. A price floor establishes a minimum price that can be charged for a product. It is always set above the market equilibrium. Price floor will lead to an increase in supply in the market that is not commensurate to the amount of demand. This will lead to a surplus in the market. Buyers will be more selective since there is a wide range of commodities in the market. Due to the high amount of goods produced there will be wastage due to the coffee glut in the market. The government can also buy up all the excess coffee and store it then release it into the market at a later ...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
(“Supply and demand: Markets, Prices and price setting Case Study”, n.d.)
Retrieved de
(Supply and Demand: Markets, Prices and Price Setting Case Study)
“Supply and Demand: Markets, Prices and Price Setting Case Study”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Supply and demand: Markets, Prices and price setting

Financial Markets and the SEC

The regulation of the American financial markets is the responsibility of the government. Since the governmental system in America is democratic, it can be said that the finance market laws represent the wishes of the people in a very significant way. Previous governments have recognized the need to establish independent bodies for monitoring, evaluation and regulatory purposes for a variety of industries. The Federal Communications Commission (FCC) regulates the telecom industry; the Environmental Protection Agency checks the controls on pollution and so on (Wikipedia, 2006).

Historically, the financial markets in America were first brought into defined regulatory control with the passing of the Federal Trade Commissio...
6 Pages (1500 words) Case Study

Family Presence in an Emergency Setting

The family members who have their loved ones in emergency particularly in a setting of cardiopulmonary resuscitation, express the need for their presence and point it out as a right and as something that is of great importance for the patients and for them (York,2004; Eppich & Arnold, 2003). 
“The needs of family members of critically ill patients have well established: the need for information, the need for reassurance and support, and the need to be near the patient” (Meyers et al, 2000 as cited in Henneman & Cardin 2002)

Yet today there is a tendency for moving from patient-centred model to a family-centred one where family involvement in caregiving is being considered seriously by the h...
14 Pages (3500 words) Case Study

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

Strategic Opportunities for E-commerce Enabled Supply Chains

Scaling the e-business in IT infrastructure is important because it reduces the cost and expenses to interact with the customers and suppliers. It also helps in maintaining and in management of the e-business. 

“As your environment begins to evolve, it is important to recognize the value of horizontally scaling your platforms and applications to support increased loads and service requirements. As the concurrency and complexity of your systems grow, the greater the need becomes to support policy-based routing, application and data caches, as well as load balancing hardware and software.” (Whitepaper; August 2001)

From very starting there was a need for those applications that can be used to c...
9 Pages (2250 words) Report

Money & Capital Markets

The subprime lending crisis rocked the U.S. economy in late 2006 and early 2007. Subprime lending refers to the loans which are provided to the borrowers having less than ideal credit histories. In other words, subprime lending is provided to persons who do not qualify for conventional credits or loans.

The subprime loans gave rise to inflated credit facilities, increased availability of infrastructure and more circulation of more currency in the economy. But this system also gave rise to unprecedented meltdown, liquidation of funds and resultant heavy losses of financial institutions due to non-payment of loans by the borrowers.

The main reasons for the crisis are more than one. They are the failure of the b...
10 Pages (2500 words) Assignment

American Airlines: Supply Chain Nightmare

For this reason, it is necessary that all business sectors are carefully reviewed – as often as possible – for the appropriateness of their structure and their daily needs; managers may fail to evaluate with accuracy their firm’s needs, a fact that can cause the failure of plans applied on the relevant organization (Hardless, 2005). On the other hand, the needs of various organizational departments are different; the methods used for the improvement of a firm’s activities should be flexible taking into consideration the characteristics of the specific organizational sector, its strengths/ weaknesses but also its role in the development of the firm’s activities. Boeing is a firm with a long presence in...
15 Pages (3750 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

Emergency Economic Stabilization Act of 2008 and How It Has Impacted the Financial Markets

Though there were objections from various quarters about the huge amounts of tax payer’s money being used in the bailout of huge corporates, the Act has been successful in moving the downturn towards a flat point and now has started slowly moving towards a recovery stage. The various programs under the EESA 2008 have played a significant role in the financial sector, housing mortgage, and banking institutions to save the institutions from complete disaster.

The Emergency Economic Stabilization Act is a huge taxpayer bailout designed to rescue the financial sector. The amount of money to be used is around $700 billion or $2000 per American citizen (Public mark up). Emergency Economic Stabilization Act of 2008 is al...
10 Pages (2500 words) Research Paper

Relationship between Money Supply and Inflation in Saudi Arabia

Over the recent past, the effects of money supply, debt and inflation have become contentious issues for debate. Furthermore, frequent cautions concerning the risk of very large budgetary deficits aver that this would send up the upcoming state debt and capital rate as indicated by the rates (interests). As a nation, Saudi Arabia has a bi and enduring budgetary deficit over the past two decades and the government has been forced to go into the market so as to have loan access and to make up for the deficits. Given the impact of this on inflation and other economic variables, it's imperative and of great alarm for strategy architects (strategists) to understand how microeconomics has an effect on money supply, financial plan defici...
10 Pages (2500 words) Speech or Presentation

Logistics and Supply Chain Strategy

Sustainability increases the mode of rail and sea freight and intermodal transport. The demand characteristics in some cases influence the choice of transport mode and even the need for safety stocks. The appropriate logistic strategy is essential for any organization as the manufacturing lead time is affected by the product characteristics and design. Globalization is a factor that causes longer lead times as a result of longer distances (Chan and Lee, 2005, p.78). The basis for any logistic strategy is the product. The product pricing is affected by the choice of transport mode. The production flow is smoothened with good demand predictability. Demand predictability is improved with the help of information technology through gre...
6 Pages (1500 words) Assignment
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 Case Study on topic Supply and demand: Markets, Prices and price setting for FREE!

Contact Us