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First is the price that has an inverse relation, that means consumers want to buy more when the price is low, and will buy less when it is high. Next is the income wherein the effect of buying depends on the income. But this type of reasoning depends on the kind of commodity. For normal goods, as income increases demand also increase, and demand for product decrease as income lessens. Next is Tastes and preferences of consumers; Demand is also affected by consumers taste and preferences, particularly now, that consumers have become health conscious. Another aspect is the consumers’ expectations. When consumer anticipates a price increase, tendency is to stock up, because this is an expectation of what to happen. A demand for instance, is affected by weather, Consumption increases during hot weather, and decreases in winter.
The dictionary has defined equilibrium price as the quantity of goods buyers are willing to buy and the quantity of goods sellers are willing to sell. The equilibrium price is found in a diagram where supply and demand interacts . P1 and Q1 are the points of equilibrium where supply = demand. At any price above P1, supply exceeds demand price below P1demand exceeds supply. (tutotr 2u)
Target market of the new Cola drink is the American consumers, who, according to Huffpost Healthy Living, (05, July, 2012), half of the number of American surveyed, drink soda on a daily basis, with an average of 2.6 glasses. Study of Diechert, Mehga, et. al ( Feb 22, 2006)shows soft drink industry has a market share of 46.8 % that competes with that of non-alcoholic drink Business wire( February 04, 2011) estimates soft drinks’ global market to have a volume of 465.4 billion liters, which is an increase in the consumption of 16.7% since 2006. Clearly, this is an indication that the soft drink industry is still strong and a profitable industry. Outside U.S., there is an indication that Coca-Cola does not retain sales
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On the other extreme is the monopoly, a single firm in the whole industry hence there is no competition (Sloman 2007). Theoretically a perfect competition is possible but practically a perfectly competitive market does not exist. Properties of a perfectly competitive market include: 1 Consumers believe the products are homogenous 2 Firms are free to entry or exit the market 3 Buyers and sellers have perfect knowledge (buyers know the price charged by sellers and sellers know about the number of buyers in the market) 4 Minimal transaction costs- the expense of finding a buyer, in case of a seller, or vice versa for a buyer and making a trade transaction are almost negligible (Perloff 2003).
The research delves into monopolistic competitive market. The mere mention of monopolistic competitive shows that there are many small competitors in the same market. The competitors sell different products that can fill the same need. For example, the grocery store sells different brands of cheese.
Explain graphically and verbally what happens to the market in the short run and in the new long-run equilibrium if factor prices and demand are assumed to remain the same as before. Hint: You have to use two parallel diagrams, one for an individual (representative) firm and one for the industry.
Being the largest fast food chain restaurant in the world today with 32, 000 restaurants in 119 countries worldwide, McDonald’s set the bar so high and turned the competition so fierce. Hence, as an amateur in the field of food merchandising, it is highly beneficial to come up with a comprehensive, detailed, and clear-cut competitive market analysis of the world’s largest fast food chain.
As a result, the firm is always producing new technology products especially phones, entertainment electronics and computing electronics. A good example is their smart phone called iPhone that has come to be synonymous with smart phone. When the market thinks of a smart phone, they think of Apples iPhone.
Before the arrival of the financial crisis the economy of the entire world was going with a very decent pace as, different economic indicators showed green signals for about every economy. Satisfactory balance of payment, underestimated unemployment rate and foreign direct investment (FDI) are some of the indicators which are on top of the building.
Toyota has been damaged due to the recent diminished in the price of U.S dollar.
The main competitors of Toyota in the market today are General motors and Honda. General Motors is dominating the market since last 81 years. Honda fills major portion of automobile
Thus, as the world experiences these changes in the market, a ripple effect is felt from the firms down to the final consumers that leads to the creation of new rules or trends in the market. This paper seeks to explore the impact of changing
Analyzing how competitive the market can be allows business make important decisions with regards to whether to introduce a new product or not to maximize profit. This paper seeks to analyze the relationship between diminishing marginal productivity and both labour and
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