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
What are the significant factors that have led to the success of Shoppers Stop?

Retailing and Wholesaling   Retailing and wholesaling consist of various organizations bringing services and goods from the point of manufacture to the point of use. Retail

What is the role of competitors in microenvironment of a company? Competitors: The marketing concept declares that, to be successful, a company should give greater custo

Question 1: Describe the types of new service developments and its stages Introduction Detail explanation on types of new service development and its stages Diag

How are fewer buyers in business market and the consumer market affected? Fewer Buyers: Within business market, buyers are fewer in number while compared to consumer market.

define company`s marketing environment.what are the actors and forces that constitute company`s marketing environment? discuss

What is a behavioral measure of customer satisfaction measurement? Behavioral Measures of Customer Satisfaction Measurement: This is sometimes believed that dissatisfactio

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 supp

Question 1: The term "Below the Line Media" refers to the non-commission paying advertising media like direct mail, sales literature, point of sale display material, exhibition

what is the plc of dettol dishwash?