Movements versus shifts, Marketing Management

Problem: Movements Versus Shifts

For each of the following statements, determine whether there has been a change in supply or change in quantity supplied. Draw a demand and supply diagram for each situation to show either a movement along the supply curve or a shift of the supply curve.

(a) The price of Canadian-grown peaches skyrockets during an unusually cold summer that reduces the size of the peach harvest.

(b) An increase in income leads to an increase in the price of beef and also to an increase beef sales.

(c) Technological improvements in the microchip lead to price reductions for personal computers and an increase in computer sales.

(d) Greater awareness of the health risks from smoking lead to a reduction in the price of cigarettes and to fewer cigarettes being sold.

Because bagels and cream cheese are often eaten together, they are complements.

(a) We observe that both the equilibrium price of cream cheese and the equilibrium quantity of bagels have risen. What could be  responsible for this pattern ña fall in the price of flour or a fall in the price of milk? Illustrate and explain your answer.

(b) Suppose instead that the equilibrium price of cream cheese has risen but the equilibrium quantity of bagels has fallen. What could be responsible for this pattern ña rise in the price of flour or a rise in the price of milk? Illustrate and explain your answer. (Hint: flour and milk are inputs for bagels and cream cheese, respectively).

Posted Date: 2/19/2013 6:00:39 AM | Location : United States







Related Discussions:- Movements versus shifts, Assignment Help, Ask Question on Movements versus shifts, Get Answer, Expert's Help, Movements versus shifts Discussions

Write discussion on Movements versus shifts
Your posts are moderated
Related Questions
Q. Evaluate the effectiveness of goodwill Advertisement ? Goodwill ads are issued to develop the image of the organization in the long run. The intention of these ads is to imp

Question 1: (a) What is meant by the term knowledge culture and what are the factors that influence it? (b) Discuss the view that the knowledge culture in all organisation


What are the ways to decrease the customer defection rate? To decrease the customer defection rate, a company should: a) Explain and measure the retention rate. b) Classi

what are ten important things needed for marketing to take place?

Enumerate about the Target marketing and research Use of target marketing processes in the consumer market has been more advanced and sophisticated than in organisational ma

Question 1: a) What are the evaluative criteria marketing management can use to assess the usefulness of marketing segmentation variables? b) Explain how ‘organisational

Channels of distribution Meaning and definition: a major focus of channels of distribution is delivery. It is only through distribution that public and private goods and serv


What are the Two types of exchange Two types of exchange signify extremes in a spectrum of exchange transactions. In industrial societies market exchanges have tended to domin