Answer to Question #276030 in Microeconomics for joey

Question

A. Choose a product with which you are familiar (i.e. Starbuck’s Frappuccinos) that will be

affected by the dynamics of the market economy.

B. Make up two different headlines for two graphs relating to factors causing a shift in demand,

then show how each will impact the product related to either surpluses or shortages and

ultimately a change in the equilibrium price. One must be an increase in demand, the other a

decrease in demand. You may only use each cause of a shift once!!! such as population.

C. Do the same for two factors causing a shift in supply. You must draw a separate graph for

each factor. You may only use each cause of a shift once!!! such as technology.

D. Type a paragraph about each of your graphs (four total) to predict whether the product will

demonstrate an increase or decrease in demand or supply and what will have to happen

economically (i.e., shortage, surplus, price increase, price decrease).

Answer 1

A)     Starbucks

B)     A shift on demand on Starbucks will be influenced income of people and culture. In this case, a decrease in the income level inclines people to minimize their consumption of coffee while an increase prompts them to consume more. The former causes a shift on demand curve towards the left while the latter causes an outward shift of the demand curve towards the right to show an increase in demand. On the other hand, a culture that favors the consumption of coffee makes Starbucks to exhibit a shift on demand curve towards the right to show an increase while that which fails to embrace coffee consumption leads to a decrease in the demand of coffee.

C)      A shift on supply on Starbucks will be influenced income of people and culture. In this case, a decrease in the income level inclines people to minimize the firms their consumption of coffee while an increase prompts them to consume more. The former causes a shift on demand curve towards the left while the latter causes an outward shift of the demand curve towards the right to show an increase in demand. On the other hand, a culture that favors the consumption of coffee makes Starbucks to exhibit a shift on demand curve towards the right to show an increase while that which fails to embrace coffee consumption leads to a decrease in the demand of coffee.

D)     A shift on demand or supply curves is influenced by price increase, surplus, and price decrease