Fators Affecting the Demand and Supply

In: Business and Management

Submitted By janicecalice
Words 1951
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Factors That Will Be Affecting the Demand
And Supply For Products

Introduction: 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 is described as the ability and willingness to supply a specific quantity of a product at a given price (Grant, 2002). The supply curve is upward sloping and varies directly with price. Price changes cause a movement along the demand curve while changes in the factors that influence supply cause a movement of the curve itself. A dynamic global economic environment with continued innovation leading to new and improved technologies entails ever changing demand and supply situations for a large number of goods and services on offer to consumers presently. This paper examines the changing demand and supply considerations for 10 such products with a synthesis as to whether demand/supply for/of them will increase/decrease in the years to come. Before we proceed, it is important to understand what is meant by demand and supply in economic terms.

FACTORS THAT WILL BE AFFECTING the DEMAND FOR CONVENIENCE FOODS IN the NEXT SEVERAL YEARS

Demand for convenience foods (like those manufactured by the Peterborough based Perkins Food Company) 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. 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…...

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