Reference no: EM13242123

1. Discuss one recent price change that you have noticed while visiting your local supermarket. Determine whether or not the price change that you identified was a result of a change in either supply or demand. Change in demand is a shift of the demand curve caused by a change in a variable other than the price of the product.

Change in supply is a shift of the supply curve caused by a change in a variable other than the price of the product.

I have noticed that the price in ground turkey has really jumped up. When Wal-Mart first started selling Brooks farm products it started out at $1.00 a package this package has increased to $2.99. I believe this was caused by the demand for this turkey product. Obviously so many customers were purchasing the product and the demand increased and the company knew that the customers would still purchase it even if the price did increase. This product taste good and I will continue to purchase it. It is still cheaper than purchasing Jennie-0 and it taste the same to me.

2.Based on your response to the first part of this discussion, identify what may have caused the shift in either supply or demand.

Because the item would always be out of stock (the quantity) or the company was testing it to see if how it would do on market. The consumers, the intake and the taste affected the demand for this product. So many people have chosen to live a healthy lifestyle and turkey is a meat that a lot of consumers have begun to purchase to replace so many fatty meats. It is a great ground turkey. If you are a turkey eater try this product.

Professor response Your observations are good, however, you need to re-post using the economic theory and terminology as provided in the lectures and reading. You may want to start with the definitions of supply and demand explaining the determinants of each and then try to respond to the question. Keep in mind that more than one of these determinants may be the culprit of the increase in price so you must consider them all. Once you have reposted using these suggestions, please respond to the following: Most people consider gasoline as a necessity with few substitutes. What does this tell you about the price elasticity of demand for gasoline. If the price of gasoline increases, what would you expect to happen the equilibrium quantity demanded. Given these observations, with an increase in the price of gasoline, what would you expect to happen to the sellers total revenue. Please explain using economic theory and terminology.