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
Technology Environment: Firm technology put affects not only its final products but also its raw material processes and operations along with its customer segments for exam


Q. Quantities Methods for preparing advertisement budget? Statistical techniques similar to multiple profitability, regressions, and simulation or programming techniques and so

Influence of environment: 1.       Opportunity: an event in the environment that may be favourable to a company may be suitably exploited by it for the overall benefit of the

considering the concept of product life cycle, where would you put video games in their life cycle?

considering the concept of product life cycle, where would you put video games in their life cycle?


State the Concept of product and its classification Product refers to the goods and services which are offered by organisation for sale. Here the marketers have to recognise th

The company 2TW manufactures and sells products overall Europe and is organised into dozens of strategic business units (SBUs). SBU managers, who report to regional directors, have

What are the disadvantages of licensing in marketing? The disadvantages of licensing are as given below: • Restricted form of participation certainly to length of agreement,