+1-415-670-9189
info@expertsmind.com
What are some things that would affect changes in supply
Course:- Microeconomics
Reference No.:- EM13725987




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Microeconomics

Supply and demand: Markets, Prices and price setting

Case Assignment

Write a 4- to 5-page essay that addresses the following FOUR questions on the market for coffee. (For this case, keep it simple; don't worry about different brands, whether it is store-bought or prepared at home, etc.)

1. Explain what happens to price and quantity of coffee when the following events occur(you do not need to analyze the event itself but rather focus on the effect on supply and demand of coffee):

a. A scientific study shows that coffee helps reduce weight gain.
b. Coffee plants from major producing countries are affected by drought. (Fun fact: a coffee bean is a misnomer for the seed of a coffee plant.)
c. The price of tea decreases.
d. In order to protect growers that have better working conditions for workers (referred to as Fair Trade), a price floor on coffee is implemented.
2. Suppose Mr. Washington drinks 3 cups of coffee every day no matter what the price. What kind of elasticity does it have?
3. Suppose that when the price of coffee increases by 40%, the percentage change in quantity demanded by consumer is reduced by 10%. Calculate the elasticity.
4. Based on your answer to Question 3, What happens to total revenue when the price of coffee is increased. Why?

Assume that donuts are a complement for coffee. If donuts are cheaper, then the consumer will increase quantity demanded of donuts. If consumers buy more donuts, then there will be a increased demand for coffee because it is its complement. This event causes a shift of the demand curve to the right. The shift will cause price and quantity of coffee toincrease.

Write a 2- to 3-page essay on the following issues:

1. Consider what your firm produces. What are some things that would change the demand for your product? Discuss at least two factors.

2. What are some things that would affect changes in supply? Discuss at least two factors.

3. How can quantity demanded be changed?

4. What kind of demand (elastic or inelastic) does the product that your firm produces have?




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Microeconomics) Materials
Presume that people expect inflation to equal three percent, but in fact, prices rise by one percent.  union worker in the second year of a labor contract. An individual who p
Now suppose there are many such firms, each of which has a potential project; these firms only differ in that they discover the existence of these projects at different time
However, it has not yet been decided whether prototype materials will be purchased from a vendor or produced in another Ajax division. What are the implications of regardin
Calculate the consumer and producer surplus before the tax. How is this proposed tax going to affect the market for Smartphone cases - that is, how will it affect the price
ECO 561- How will pricing relate to elasticity of your product? How will changes in the quantity supplied as a result of your pricing decisions affect marginal cost and ma
Analyze resource and budgetary considerations within not-for-profit organizations for determining potential challenges to financial operations. Analyze ethical consideration
A gasoline station very near a professional football stadium parks cars on its lot to make money on game days. Last year it charged $4.00 per car and parked 1000 cars. This ye
Identify two products that have either fallen sharply in price or gotten significantly better without price increases. Explain why. If an oligopolist knows rivals will match a