Reference no: EM132244273

Can someone help me to improve my paragraph: Can you add or delete things that I repeat and also mention what are the cross price elasticity of Coca-cola and Exxon Mobil as well as their sales trends and revenue growth, can you also include references like citations in my text. I need my text to be short, simple and precise. Can someone edit my work please ASAP.

First of all, we will analyze both market's price elasticities. Price elasticity is as Ragan (2017) states "The measure of the extent to which the quantity demanded of a product responds to a change in its price" (p.88). We will begin by doing a comparative analysis of the price elasticity of demand for gas and carbonated beverages. The Law of demands says that there's an inverse relationship between price and quantity. Meaning, when the price goes up for a product people buy less and when the price goes down people buy more. Elasticity of demand really measures how sensitive quantity demanded is to a change in price.While keeping this concept in mind, the price elasticity of demand for gasoline is inelastic because if there is an increase in the price of gasoline then the quantity demanded decreases but just by a little bit. Which means that, when the demand is inelastic the quantity is insensitive to a change in price. Similarly, when the price falls the quantity demanded goes up but by just a little bit. In other words, when the price of gasoline goes down you will fill up your car tanks gas a little bit more and when the price of gasoline goes up you will buy a little bit less (insensitive to a change in price). Products that have an inelastic demand such as gasoline; have very few substitutes. Meaning, people that use their cars on a regular basis will still purchase gas no matter what the price of the gas is. If the price of gas increases demand will strictly remain constant or the demand can drop marginally. For certain individuals gasoline is a necessity; no one will stop driving their vehicles because of the gas prices being high, they might decrease their long drives to shorter distances but they will not stop demanding gas. For example, as Eitches,Crain (2016) states "...when events happen to change the price of a good, consumers' demand for that good does not change commensurately. This could be because a good is a necessity. Or, it could be because the good cannot be substituted for another good". That means, that the price can change, however the quantity demanded will not change very much in response. While on the other hand, carbonated beverages such as Coca-Cola are highly elastic products because if the product has high price then it will automatically lower its demand. Meaning, carbonated beverages have many substitutes which means that this industry is elastic and not inelastic as the Exxon(gas) industry which has no substitutes. Secondly, let's analyze the concept of income elasticity of demand between Exxon (gas) and carbonated beverages (Coca-Cola). In this case, the income elasticity demand for gasoline is as well inelastic.Meaning, if a person has a lower of higher demand it will not affect the demand for gasoline. For example, a person with a higher income will drive his/her vehicle more compared to a person with lower income that will simply only use their vehicle in case of an emergency which means that they will lower leisurely driving. The demand for gas can be affected by the lower income that people receive because if a person has low income then this fact will lead them to not be able to afford a car, pay for their insurance, pay for repairs on their vehicle, pay for gas which means that they will not be able to afford gas at all. Which means that the demand for gas can be affected by this principle. While on the other hand, the income elasticity for carbonated drinks are elastic because there will bee an increase in the demand for branded carbonated drinks due to the increase with income. Similarly, an individuals decrease in income will lead to a drop in demand for carbonated beverages. For example, individuals with low income might stop purchasing carbonated beverages as Coca-Cola and purchase Coca-Coca's competitors beverages or drink more water, tea, lemon beverages which they can afford instead. In addition, let's know analyze the substitutes, complements as well as the major competitors of Coca-Cola and Exxon Mobil. The substitutes for carbonated drinks based on the knowledge of consumer theory refers to products that the consumers of soda perceive to have which might the same or similar to Coca-Cola products. Meaning, the customers can derive the same satisfaction by consuming a substitute good in place of the other. The rival products that can be substitute or take the place of Coca-Cola products are the following: Coffee,Black tea, lemon tea, fruit juices (orange), sports or energy drinks, and sparkling water. If the price of Coca-Cola goes up, fewer people will buy Coca-Cola. They will instantly switch to its alternative and vice-versa. Also, consumers are consuming other drinks instead of Coca-Cola because of the sugary contents of Coca-Cola's products. People want to consume more healthy and organic products for their health benefits because soda consumption has been lately linked with an increase risk for heart disease and diabetes, as well as to rising rates of obesity. While on the other hand, Exxon Mobil is an energy company that engages in oil and gas exploration, production, supply, transportation, and marketing worldwide. The subtitles for Exxon are wind energy, solar power, biofuels, nuclear power, biomass and geothermal. The reason why Exxon Mobil's products are being substituted is because this renewable sources of energy is the need to preserve the environment and mitigate the effects of climate change. Also, the cost of crude oil has been constantly rising hence the need to look for cheaper and cleaner alternative sources of energy. Furthermore, let's now analyze the complements of each industries. The complements for Coca-Coca are good that can be consumed together with Coca-Cola. They include bread and cakes. While on the other hand, the complementary goods for Exxon Mobil are automobiles such as cars, large tracks, and coal plants. These goods are used jointly in the consumption with one another. Moreover, lets know analyze the major competitors of these two industries as well as their target market. Coca-Cola's major competitors as Pratap (2018) states are "Pepsico, Red Bull, Nestle, Parle and Dr Pepper Snapple". The biggest and closest competitor of Coca Cola is Pepsi. Coca-Cola competes across several categories including soda averages, healthy and energy drinks. Their target market is as Bhasin (2018) states "Coca Cola doesn't target a specific segment". Meaning, every age, nation, race can consume Coca-Cola. While on the other hand, the competitors of Exxon Mobil include; Shell, Chevron, Valero Energy BP, and Saudi Aramco. Their target market is all of the oil and gas industries.