Describe the changes in the supply and demand making a

Assignment Help Other Subject

Reference no: EM13458315

In economics, they say a picture is worth a thousand words. Below, you will find two scenarios. Your assignment is to discuss the situation by writing the solutions, and then show the solutions and how you got here in one or more graphs or flowcharts. Scenario One Supply and demand are foundational concepts in understanding economic theory. Whether you are a coffee drinker or not, you have been tasked to examine the impact of supply and demand when dealing with the coffee retail industry. A few companies probably come to mind. Pick a major coffee retailer and the contemplate what has been happening to both the supply and demand for this product. To begin, the following scenario deals with what happened in the coffee industry at the beginning of last decade: In the early part of the last decade, there was an overproduction of coffee. The price dropped so low that producers' costs were higher than the market price. The reason this happened was that market prices became high before this, and the supply of coffee increased substantially. In the meantime, demand for coffee and everything else remained the same. Coffee prices, as a supply input, went down. In the meantime, gourmet coffee houses began appearing, which began charging a premium for coffee in the period of decreasing prices. Gourmet coffee houses tend to open in high-rent areas and cater to higher income consumers. Because of the change they created for taste and preferences and the higher income market, the gourmet coffee houses had a win-win in a period of falling wholesale prices and increasing retail prices. Explain the changes in the supply and demand creating a supply and demand curve based on the above information. In this graph, be sure to demonstrate how these changes affected the price and quantity levels of supply and demand. Based on this analysis, how were coffee retailers faring in the marketplace? Now, fast forward to the current conditions in the coffee retail industry. Based on your research of your coffee retailer, what types of changes are occurring as they relate to supply and demand?

Reference no: EM13458315

Questions Cloud

Most of the hr performance issues result from underlying : many hr performance issues result from underlying motivational problems external to the work environment health career

Recognize current major components tasks or : prepare a 1750- to 2100-word assessment focusing on a selected job or department in your company in regard to the

How did the reliance on plantation agriculture affect the : how did the reliance on plantation agriculture affect the southern colonies? were their societies relatively loose

A description of evidence-based factors affecting : backgroundbill is a 51-year-old caucasian male who has chronic diabetes and hypertension. he has been seen at the

Describe the changes in the supply and demand making a : in economics they say a picture is worth a thousand words. below you will find two scenarios. your assignment is to

How do you draw a square around the abstract what is an : 1.why did the first people settle on crete?2.how did the nazis gain power in the holocaust?3.how do you draw a square

Determine a workplace where you have been employed or a : identify a workplace where you have been employed or a workplace you have observed in some capacity. define

Describe your design for a cross-functional training : 5-7 slides excluding title and reference slides and speaker notes of 200-250 words per slide.your organization is

Cmpare two of the four current perspectives of : compare and contrast two of the four current perspectives of organization effectiveness as explained by mcshane and von

User Account

All Pages