This website uses cookies to ensure you have the best experience. Learn more

Factors That Will Be Affecting The Demand And Supply For Products

1998 words - 8 pages

Janice Calice

Topic Paper 1:
Factors That Will Be Affecting the Demand
And Supply For Products

Presented to:
Dr. John A. Machnic, Phd

In Partial Fulfillment of the Requirements of:
Managerial Economics
Summer 1, 2013
Section OB

Demand is described as the ability and the willingness to buy a specific quantity of a product at a given price (Grant, 2002). The demand curve is downward sloping and varies inversely with price. Price changes cause a movement along the demand curve while changes in the factors that influence demand cause a movement of the curve itself.
Supply ...view middle of the document...

The factors at play are as follows:
1. The inclination towards both parents working and the rising amount of self-sustaining single parent families means that there is less time for cooking (Shafi, 2005). Why go through the pain of buying the potatoes, peeling them, cutting them to appropriate size and then stand by the stove to watch them fry when you can buy a box of ready to serve French fries that only need to be fried? Hence, pre cooked and/or laminated foods offer time saving and ease.
2. Falling income levels and job losses given the current recession means that people are going to be saving as much as possible on household services like maids and cooks (The Economist, 2009). In this respect, convenience food makes life easier for housewives. Even unmarried couples are going to find convenience food a fresh life for their pockets as it helps them to avoid eating at restaurants that effectively charge higher.




Demand for products purchased on the Internet is expected to rise considerably over the next few years, which will make the demand curve shift upwards and to the right from D0 to D1. Examples include buying groceries online at Tesco’s virtual store. The factors at play are as follows:
1. Falling income levels coupled with higher economic and social costs (like high oil prices coupled with environmental degradation as a result of pollution from transportation) is going to make purchasing over the Internet a welcome alternative (The Economist, 2009).
2. The success of certain types of retailers in the “e-tailing” genre (for example selling books) and given the current recession and the need for organizations to become more cost efficient will lead to more and more organizations styling themselves as internet based retailers. This will, as in the case of books, significantly increase competition leading to the closure of many traditional retailers like bookshops. Hence, Anderton (2002) states that the changes in the composition of total supply will change the demand situation.



Factors that will be affecting the demand for films and Cameras in the next several years:
Demand for film and cameras is expected to decline considerably over the next few years, which will make the demand curve shift downwards and to the right from D0 to D1. While there are no prominent manufacturers of camera and films of British origin, as an example, a large part of the manufacturing / distribution of traditional films and camera in the UK is done by Fuji Films (UK) Limited and Canon (UK) Limited. The factors at play are as follows:
1. Technological advances in the shape of digital cameras offering higher image quality and more ease for the user are expected to lead to a consequential decline in demand for films and cameras.

Other Papers Like Factors That Will Be Affecting the Demand and Supply for Products

The Relationship Between Supply and Demand Carve

1235 words - 5 pages will need umbrellas year-round, the change in demand and price will be expected to be long term; suppliers will have to change their equipment and production facilities in order to meet the long-term levels of demand. C. Supply and Demand Relationship Now that we know the laws of supply and demand, let's turn to an example to show how supply and demand affect price. Imagine that a special edition CD of your favorite band is released for

Supply and Demand Essay

925 words - 4 pages affecting it, an entrepreneur should be quick to respond appropriately to maintain one’s share of the market. This may involve lowering of the price and a reduction in the number of units supplied. In the event that demand rises, the supplier should increase supply to realize higher profits from increased sales at higher prices. When government authorities impose price restrictions, a supplier should only supply that number of units that

Supply And Demand

509 words - 3 pages be higher due to the changes in prices for their resources. As the consumer, it may seem silly for McDonald's to raise their prices when the price of cheese from their supplier goes up. In the same respect, if they don't, they will be reducing their profits and making it less desirable to keep that product in supply for the consumer. Demand Just as supply is affected by specific factors, so is demand. Those factors vary from a change in

Supply and Demand Simulation

564 words - 3 pages 1900 apartments leased at $1475 How do the concepts of microeconomics help you understand the factors that affect shifts in supply and demand on the equilibrium price and quantity?  The concepts I have learned from microeconomics help me understand that, although I may have my own preferences, the prices of products in the market depend of many other consumers preferences. For example, I may be willing and able to pay $50 for a product, but if

Supply and Demand Simulation

923 words - 4 pages make prices rise and decrease demand and vice versa. On the flip side of that is, supply has a downward slope curve and the number of apartments rises with price rises as well. In addition, larger numbers of apartments applies pressure on prices which leads to prices falling and for the complex to have a larger number of renters so they need to lower the price on apartments. The opposite would be, fewer number of apartments results in an climbing

Supply And Demand

876 words - 4 pages Name: Professor: Institution: Date of Submission: The simulation concerns a supply and demand for two-bedroom rental apartments in Atlantis. There are several factors that affect demand and supply of the two-bedroom apartments leading to shift in both the demand and supply curves. One of the microeconomic principle in this simulation is the law of increasing opportunity cost because it states that production

Supply And Demand

491 words - 2 pages are used by the demands that influence business operations such as an example the Subway located at 2406 Land O' Lakes Boulevard, Land O' Lakes, FL 34639 (Google Map). As one of several convenient food service providers to consumers situated in the vicinity of the intersection of highway 54 and Land O' Lakes Boulevard. “Whenever there is a change in one of the factors of either supply or demand, market equilibrium will be affected (Econport

Aggregate Supply and Demand

1592 words - 7 pages employees to keep them trained and up-to- date with the new job opportunities will help the economy grow and be stronger. One recommendation would be to keep people fully employed. The following model would explain a good plan and good business cycle to keep people employed. (A Model of the Macro-Economy: Aggregate Demand and Supply, May) This would be one goal of the economic advisor team to reach so that the U.S. government can be strong and

Demand and Supply Simulation

1105 words - 5 pages spend on them. The rental rate would have to go up so that the quantity demanded reduces until there is a reduction in shortage. This process goes on until a new equilibrium point is reached. The forces of demand and supply are extremely important in the business world. These forces are subject to various factors on the side of both the consumer and supplier. For example, an increase in demand will be subject to not only price, but also taste and

Housing Supply And Demand

989 words - 4 pages Housing Supply and DemandThere are two factors needed for a market to exist. These factors are buyers and sellers. The buyers and sellers of the housing market have a voluntary exchange of a house and/or property where the outcome will produce a conclusion where the buyer and the seller are both better off as a result of their exchange. Does this one transaction affecting the buyer and the seller have an equal outcome for a third party, with

Aggregate Demand And Supply

1995 words - 8 pages price level will make domestic goods and services less competitive against foreign goods and services. This will reduce demand for domestic products from both domestic and foreign consumers. MOVEMENTS ALONG THE DEMAND CURVE:- As with a demand curve for a particular product, the cause of a movement along an aggregate demand curve will be a change in price, in this case a change in the general price level. A rise in the general price level will

Related Essays

Factors Affecting Demand And Supply Essay

1524 words - 7 pages Discuss the factors causing a shift in the demand and supply of a specific commodity. In economics, Demand refers to the quantity of a goods or services that consumers are willing and able to buy at a given price in a given time period. The law of demand stipulates that there is an inverse relationship between the price of a good and the quantity demanded, that is to say, if the price of, say, good X rises, it will decrease the quantity

Taking Examples From Either The Housing Market Or The Commercial Property Market, Outline And Discuss The Economic Factors Influencing Supply And Demand For Your Chosen Property Type

1004 words - 5 pages The housing market in UK has been effected in many different ways, from immigration to shortages of homes I am looking to discuss these factors in depth. The demand of houses depends on what the interest rates are, as this will decide whether the buyer will be able to get a mortgage at a cheaper rate. The lower the interest rate the more demand of houses and the more demand in houses the higher the price. The supply will depend on what the

Identifying The Factors That Affecting The Customer Hospitality

5223 words - 21 pages report on “Identifying the factors that affecting the customer hospitality”. This report enriches our knowledge. We will be highly encouraged if your kind to receive this report. We put our best effort to include all the applicable information, which we have collected from both primary and secondary sources and also from our personal observation. If you need any further clarification therein, we will be your instant service and I am always

The Focus That Exxon Mobil Is Putting On The Supply And Demand Of Energy

888 words - 4 pages The focus that Exxon Mobil is putting on the supply and demand of Energy FIN/370 April 29, 2014 D'Andre Wright The focus that Exxon Mobil is putting on the supply and demand of Energy How the initiative affects costs and revenues of the supply chain. Now, the response occurs when the financial side of the “supply and demand and how products are manufactured and sold along with what the government takes in taxes” (Cohen, 2012, para. 2