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

The Demand and Supply Effect of Lays Chips on the Market of the Product - Case Study Example

Comments (0) Cite this document
Summary
This paper is aimed at considering the demand and supply effect of a particular product on the market of the product over the next few years. This paper takes into account all the microeconomic and macroeconomic factors that are likely to influence the price and output of that product over the next five years. …
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER98.8% of users find it useful
The Demand and Supply Effect of Lays Chips on the Market of the Product
Read Text Preview

Extract of sample "The Demand and Supply Effect of Lays Chips on the Market of the Product"

Download file to see previous pages For the purpose of this study, we have used a product as a guinea pig. In order to understand the impact of the product in its related market and the impact of the market on the product, we have carried out further analysis using the established theories of economics about the future viability of the product. Here for the sake of this analysis, we have used the potato chips product manufactured by the Coca Cola Company called LAYS. (Lipsey and Chrystal, 2002)
The price elasticity of demand is defined as the magnitude of the proportionate change in demand and the proportionate change in price of the product. Therefore, elasticity is the measure of responsiveness.
Price elasticity of demand is a very important concept that is related to the pricing decisions of a product. If an organization wants to generate the maximum amount of revenue from its products and it is unable to determine how much increase in the price can be made by them so that the overall demand of the product does not reduce. This decision is taken on the basis of the analysis of price elasticity of demand. The price elasticity of demand can be described as the rate of response of quantity demanded due to a price change. This means that if a unit change in the price of the product is made then the quantity demanded will also change up to the extent to which the demand of the product is dependent on the price of the product. In this case, Lays is a product which is highly appreciated the product of a very reputable company in the world and has a very large market all over the world. Through the detailed analysis of the product’s features and the price elasticity of demand on this particular product, it has come to the attention that since the product is being sold in the perfectly competitive market, any decisions regarding the product or its feature can affect its current market. (Velasquez, 2001) ...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(The Demand and Supply Effect of Lays Chips on the Market of the Case Study - 1, n.d.)
The Demand and Supply Effect of Lays Chips on the Market of the Case Study - 1. Retrieved from https://studentshare.org/macro-microeconomics/1518810-economics-assessment
(The Demand and Supply Effect of Lays Chips on the Market of the Case Study - 1)
The Demand and Supply Effect of Lays Chips on the Market of the Case Study - 1. https://studentshare.org/macro-microeconomics/1518810-economics-assessment.
“The Demand and Supply Effect of Lays Chips on the Market of the Case Study - 1”, n.d. https://studentshare.org/macro-microeconomics/1518810-economics-assessment.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The Demand and Supply Effect of Lays Chips on the Market of the Product

Starbucks in Chinese Market

In the year 1996, the coffee giant marked its global presence. Up until 2004, the Chinese government prohibited Starbucks to operate its own stores in China. As a result, the coffee giant enters the Chinese market by joint-venturing with Chinese food and beverage companies and licensing other companies to own and operate its stores--differs from its domestic approach. But the company was able to easily overcome its initial obstacles and marked its presence in China very quickly and successfully with great brand recognition and customer satisfaction. The company also tailors its stores to match the local atmosphere. This is a transnational strategy. “For example, the Starbucks strategy in Shanghai is to attract middle to high...
7 Pages (1750 words) Case Study

Market Structure

The market structure is mainly classified based on the number of active players in that market. These market players are the main component to supply a particular type of product in that market. If we look at the economists' view, these players within an industry are the main parameter for the level of competition in that industry. Whether it is a perfect competition or monopolistic competition these players supply only a small portion of the total output for the industry but this small contribution only determines the main market structure. If we talk about the market types there are few players in the oligopoly markets, only two in duopoly and a single player in the monopoly markets.
If we talk about car manufacturing compa...
10 Pages (2500 words) Coursework

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

The Effect of Democracy on Chinese Development

Any country first needs to go through economic liberalization and political liberalization before finally settling into a stable democratic situation. Democracy should not at any one point be viewed as if it were socialism, but should be seen as a means of promoting economic development through accountability and protection of individual lawful rights and interests...accountability in the sense that the respective leaders are able to fight corruption, enhance social harmony, strengthen public trust and more importantly empower government institutions that are directly in touch with the people (Liu, 2008, p.1-2). Owing to the Chinese well informed and affluent society on top of having a very dynamic economy, the political change wh...
7 Pages (1750 words) Coursework

The Effects of Financial Crisis on Supplier Selection Criteria of the Oil and Gas Industry Equipment Market

It is a difficult task to find those vendors who not only have the adequate quality and quantity of the needed raw materials but who also have an attitude of efficiency and display commitment to customer service (Sonmat, 2006). Further, organizations also strive to locate and select vendors who can be depended upon for long term relationship.

The number of factors or attributes desired from the vendor is vast, and different organizations and different industries place different importance on the attributes (Sonmat, 2006). Some of the vendor attributes may gain importance owing to the nature of the industry, for example, in the case of consumer perishables suppliers, like fresh vegetables or fruits, the buying firm would...
20 Pages (5000 words) Literature review

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

Effect of Corporations Moving Jobs Overseas on the Economy

The issue comes into focus, whenever there are political, economic debates or talks about H1B visa limits. The economic slowdown has further led to the intensification of these debates. But, despite apprehensions from different quarters, neither the companies nor the government has said a final word on the trend. Increasing levels of competition amongst the corporate houses have been one of the key highlights of the globalization era. Be it the retail sector, the banking, the automobile, the IT-enabled services, the white goods space, etc. the companies have always been on the lookout for reaching out to more number of customers while doing everything possible to please the existing lot. Leveraging the economies of scale has prove...
8 Pages (2000 words) Coursework

Economic Models: The Free Market and The State Owned System

The free market concept is mainly a theoretical concept as every country, even capitalist ones place some restrictions on the ownership and exchange of commodities (Free market economy). Therefore, the term free-market economy primarily means a system where the buyers and sellers are solely responsible for the choices they make. It gives the buyers and sellers the power to do business without being afraid of any regulations and intervention by the state. Hence, a free market gives the absolute power to prices to determine the allocation and distribution of goods and services (Free Market Economy). The pricing mechanism is in turn, driven by the forces of demand and supply of goods and services. Demand and supply of...
9 Pages (2250 words) Case Study

Money Policy versus Credit Market

Financial institutions generally engage in securitization to enhance their profits by trading in the collateralized backed securities that generate high yield returns to the financiers. This nevertheless inversely and negatively affected the credit markets as their efforts to enhance their liquidity positions backfired. Consequently, the import of these monetary strategies has generated cyclical effects on the monetary system to the detriment of the financial system.

Normally, money markets demonstrate a more efficient allocation of credit whenever additional liquidity is injected into the system, which would otherwise display some undesirable distortions. Ultimately, the liquidity market is not easily susceptible to ex...
6 Pages (1500 words) Case Study

Foreign Market Entry and Diversification

.... Modelo can gain competitive advantage over its competitor by increasing its reach in the global market and strengthening its distribution network. Furthermore Modelo should think of launching some new brands considering the different tastes of consumers in the different parts of the world. Modelo should enter the developing markets with its entire product portfolio through joint ventures or strategic alliances with the domestic players. This will enable the company to understand the taste of the local consumers in a more effective way. It should first enter those markets where InBev does not have a strong presence. For example in Asian countries like China and India where the company has recently entered it owns very little market share...
7 Pages (1750 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 The Demand and Supply Effect of Lays Chips on the Market of the Product for FREE!

Contact Us