Explain the changes in the supply and demand

Assignment Help Business Management
Reference no: EM13777859

Question: Individual Project

In economics, they say a picture is worth a thousand words. Below, you will find two scenarios. Your assignment is to discuss the situation by writing the solutions, and then show the solutions and how you got here in one or more graphs or flowcharts.

Scenario One

Supply and demand are foundational concepts in understanding economic theory. Whether you are a coffee drinker or not, you have been tasked to examine the impact of supply and demand when dealing with the coffee retail industry. A few companies probably come to mind. Pick a major coffee retailer, and then contemplate what has been happening to both the supply and demand for this product.

Next, analyze the following scenario that deals with what happened in the coffee industry at the beginning of the last decade:

In the early part of the last decade, there was an overproduction of coffee. The price dropped so low that producers'' costs were higher than the market price. The reason this happened was that market prices became high before this, and the supply of coffee increased substantially. In the meantime, demand for coffee and everything else remained the same.

Coffee prices, as a supply input, went down. In the meantime, gourmet coffee houses began appearing, which began charging a premium for coffee in the period of decreasing prices. Gourmet coffee houses tend to open in high-rent areas and cater to higher income consumers. Because of the change they created for taste and preferences and the higher income market, the gourmet coffee houses had a win-win in a period of falling wholesale prices and increasing retail prices.

Explain the changes in the supply and demand creating a supply and demand curve based on the above information. In this graph, be sure to demonstrate how these changes affected the price and quantity levels of supply and demand. Based on this analysis, how were coffee retailers faring in the marketplace?

Scenario Two

In this next scenario, start your discussion by examining the differences between the definitions of the macroeconomics and microeconomics. Next, discuss how the concepts of supply and demand relate to (1) microeconomics and (2) macroeconomics.

For you to demonstrate understanding of supply and demand from the perspective of microeconomics versus macroeconomics, pick 2 of the 10 scenarios below and discuss the following questions:

Is the scenario a macroeconomic or microeconomic example of supply and demand?

Is this impacting supply or demand?

Is this example going to experience a shift or a movement of supply or demand?

As a result of this change, what happened to equilibrium price and quantity?

The 10 examples for you to consider are as follows:

1. After Hurricane Katrina, what happened to the price of fish?

2. After the development of the microchip, what happened to the price of computers?

3. After the government raised tariffs on imported cheese, what happened to the price of domestic cheese?

4. Polyester suits have become trendy again. What happens to their price?

5. Internet auction sites are becoming more popular, and people are using them more and more.

6. A new health report came out that said red wine lowers cholesterol.

7. The government raises taxes.

8. Inflation increases.

9. Immigration laws are relaxed.

10. The government increases spending.

Verified Expert

Reference no: EM13777859

Questions Cloud

Case study on umuc haircuts : Have completed all previously assigned readings, particularly those assigned in Weeks 3 and 4 of the class Re-read the "UMUC Haircuts Case Study" and the Stage 1, 2 & 3 assignments, and review the "WalmartExample."Review Instructor feedback from prev..
Net income-how much is accounting rate of return : Edy's, Inc. wants to purchase of a new ice cream truck with a cost of $51,000. Edy's has a cost of capital of 7.4% and a required rate of return of 10.4%. Its income tax rate is 32%. The acquisition is proposed for January 1, 2011.
What are causes of increasing street crimes in our socity : Write a paper about WHAT ARE THE CAUSES OF INCREASING STREET CRIMES IN OUR SOCITY? Create a power point as the means to present your topic to the class. You can also include a brief video clip.
Business situation that presents a legal and ethical issue : A description of a business situation that presents a legal and ethical issue. A description of at least two ethical theories under which the situation will be analyzed
Explain the changes in the supply and demand : You will find two scenarios. Your assignment is to discuss the situation by writing the solutions, and then show the solutions and how you got here in one or more graphs or flowcharts.
What is the materials price variance : Smithy Company produces hockey helmets. The standard cost for each helmet is as follows: Direct material 5.0 lbs at $4.00/lb. $20.00 Direct labor 2.0 hrs @ $16.00/hr. $32.00 Overhead $10.00. During November, 2,000 helmets were produced. 10,600 lbs. o..
What is the precedent that is set in your case : What is the precedent that is set in your case, What was the state of law in this controversy (the previous precedents), Who are all these other involved parties (i.e. amici) (yes, again), why are they involved and what are the dynamics of their invo..
Cost characteristics-fixed costs-variable production : Brett Favor has written a self improvement book that has the following cost characteristics when 10,000 books were sold: Sales $160,000 Variable Production $40,000 Selling & administrative $20,000 Fixed costs: Production $88,000 per year Selling & ad..
Way in which different staffing levels may play pivotal role : Analyze the primary way in which different staffing levels may play pivotal roles in upholding ethical conduct, including treating patients with dignity. Justify your position

Reviews

Write a Review

 

Business Management Questions & Answers

  Risks associated with global business operations

Risks Associated with Global Business Operations - Explain what are the three primary risks inherent in global business operations?

  Illustrate what happened with countrywide

This goes beyond the most recent case decisions about wrongful foreclosures I need you to research illustrate what happened with Countrywide, etc as the starting place for your paper as well as the wrongful foreclosure litigation which is presentl..

  Establish authorities and responsibilities for database

1. Establish authorities and responsibilities for database security management. 2. Develop operational and incident management procedures when security breaches are discovered. 3. Define personnel and procedures for daily administration and maintenan..

  Explain why the contract isn''t definite enough

For the reasion all these terms were omitted from the agreement and the contract is not definite enough to be valid

  Description of learning styles1 list five things that you

description of learning styles1. list five things that you learned about yourself from the personality learning

  The main tool is probability analysis

The main tools are Probability Analysis, Sensitivity Analysis, and Decision Tree Analysis. Discuss these tools one at a time. As you discuss these, bring in how you would discover risk

  Explain what is enterprise transformation

Explain what is enterprise transformation and What role does leadership have in the transformation process?

  Examine servant leadership within an organization

Examine Servant Leadership Within an Organization - Identify the following relating to implementing servant leadership within your organization

  Selecting individuals for leadership positions

When selecting individuals for leadership positions, trait theory suggests that which of the following is least helpful for identifying leaders?

  Ben bought hundred shares of stock from the frankfurt

Ben bought 100 shares of stock from the Frankfurt (Germany) Stock Exchange at a price of €50 per share when the exchange rate was

  Ceo as an organizational architect shape rules build

ceo as an organizational architect shape rules build coalitions influence rule makingplease help without conducting any

  Determine the portion of time

Every hour, the ticket seller at local mall can serve an average of twelve consumers every hour, and an average of 10 consumers every hour arrive to buy tickets for the Grateful Dead concert.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd