Premium Essay

Market Demand

In: Business and Management

Submitted By 874887041
Words 651
Pages 3
A.
Product description: Finking’s Running Shoes.
Traditional sneakers may not provide the support and comfort consumer’s need, resulting in foot or lower-back pain. However, Finking’s running shoes with special design could protect consumer’s foot and improve her/his exercise performance, since Finking have three unique features regarding materials. First, two types of rubber on the outsole: carbon rubber is a stiff and heavy material, while blown rubber is lighter-weight, cushioned and flexible. Additional, the midsole of Finking’s shoes is the shock-absorbent material between the outsole and the upper shoe. Next, Finking’s shoes are not too soft or too thick. The materials that make up these running shoes are lightweight mesh and heavy-duty leather. Thus, Finking is going to provide the most stable, comfortable and excited exercise experience.
The running shoe industry has a very competitive landscape. There are many shoes manufactures in the world, such as Nike, Adidas, and New Balance. However, Finking’s shoes have special designed treads and the unique materials, which can make Finking’s shoes more competitive.

B.
Through a combination of market research and data from pricing experiments, we estimate that at a price of $160, consumers would not demand any shoes; at a price of $140, consumers would demand 5,000 pairs; at a price of $120, consumers would demand 10,000 pairs, and so on.
According to the demand equation of the functional form: P= a – b Q
We can get: a = 160 b= △Q/△P = (160-140)/5=4
Thus: P = 160 – 4Q
All the prices and demand are based on the market research regarding running shoes, such as Nike, Adidas, and Puma. Comparing the price with other competitors, Finking makes the assumption based on the average data.

C.
C (a)
Assuming: a price of $100 per pair, consumers would demand 15,000 pairs of Funking’s running shoes each week. And…...

Similar Documents

Premium Essay

Low Market Demand of Rupali Bank

...A PROJECT REPORT ON CAUSES OF LOW MARKET DEMAND OF RUPALI BANK LTD. AND MEASURES TO CHANGE THIS SITUATION . Dear Sir, We Take pleasure, in accordance the class project of Business Communication, submitting the class project on the CAUSES OF LOW MARKET DEMAND OF RUPALI BANK LTD. AND MEASURES TO CHANGE THIS SITUATION Submitted by the EMBA students, 20th batch. Yours sincerely, Rajib Das – EMB0001 MObarak Hossain Chowdhury- EMB000 Washington Dey- EMB000 4 Al-Jobaier Ahmed – EMB0005 ACKNOWLEDGEMENT We take this opportunity to express my profound gratitude and deep regards to my guide ( Mr. Tarafder Mohammad Mehedi Al- Masud ) for his exemplary guidance, monitoring and constant encouragement throughout the course of this report. The blessing, help and guidance given by him time to time shall carry us a long way in the journey of life on which we are about to embark.   We also take this opportunity to express a deep sense of gratitude to Mr. Abdul Halim, FAVP, First Security Islami Bank, for his cordial support, valuable information and guidance, which helped us in completing this task through various stages.   We are obliged to staff members of ( Rupali Bank Ltd. ), for the valuable information provided by them in their respective fields. We are grateful for their cooperation during the period of my assignment.   Lastly, we thank almighty, Our parents, and friends for their constant encouragement without which this assignment would not be......

Words: 3799 - Pages: 16

Free Essay

Demand and Supply of America Medicine Market

...Demand and Supply of America Medicine Market Associated with the quality life that modern society people pursued, an excellent health care is always concerned no matter where people are. However, the medicine demand and supply are an indispensible part of the chain. So there is a medicine issue of demand and supply in America, which eventually has required US government intervention is of serious concern. Initially, from the article, it is can be explored that the demand of vital drugs like generic drug that is used to treat cancer, where shortage reports seem most critical and total number for drug shortage reached 232 in 2011 (The Economist, 2011). The factor caused this firstly is because of limited production capacity. So, as the demand for this type of medicines increasing, production lines are stretched to limitation. As a result, the shortage is caused while price goes up too. Another factor for America medicine shortage is the consequence of long run excessive production. The medicine firms are willing to produce more drugs in order to maximize profits. However, the pressure on production causes a severe drawback on medicine’s quality. The bacterial or fungal contamination will result in large proportion of rejects and lowering real quantity that can be traded to the medical market. Thus, the whole industry has to depend on a handful of manufacturers who are keeping hygienic rules strictly but providing less quantity of drugs, which gives rise to lacking......

Words: 880 - Pages: 4

Premium Essay

Demand Analysis of It in Different Market Conditions

...Abstract This paper analyzes the demand of Information Technology during different market conditions. This paper discusses the role of IT and its significance in the current world. It also discusses various market conditions that prevailed over the last few decades and their impact on IT. This paper mainly focuses on the recent recession and how is IT impacted and transformed during these conditions. Having discussed the history of IT in different market situations, this paper throws a light on future conditions and growth in the field of IT. DEMAND ANALYSIS OF IT IN DIFFERENT MARKET CONDITIONS Introduction Demand is an economic principle that tells us about consumers' want, readiness and their capability to pay a price for a specific good or service. It is a common belief that greater the demand, greater is the price of a good or service. But, what leads to the demand of a particular good/service is a complex analysis and is different for each good/service. Any business, before development or expansion, studies the demand for its product. This study of demand is a complex process. Based on this demand analysis report, a firm leadership would decide on extension or starting of the business. The demand analysis might help determine or justify a desire for expansion in a particular sector or just to assess the health of a particular sector. Even though the demand analysis procedure is performed differently based on the type of business or study,......

Words: 1720 - Pages: 7

Premium Essay

Market Structure and Supply and Demand of Starbucks

...Market structure refers to the physical characteristics of the market within which firms interact. It is determined by the number of firms in the market and the barriers to entry. The definition of monopolistic competition is “a market structure in which there are many firms selling differentiated products and few barriers to entry”. The market structure of Starbucks is a monopolistic competition. In the coffee industry, many producers and consumers exist, the goods and services are mixed, but firms are still able to differentiate their, products. Starbucks is a textbook example of a monopolistically competitive firm: many sellers, low barriers to entry, slight product differentiation. As an example of monopolistic competitive firm, Starbucks understands how that market structure works, thus giving them substantial profits in the past few years. Starbucks has managed to maintain its success even during unprofitable times with its other branches through customer loyalty, quality private goods, and knowing the labor market. Monopolistic competition also provides consumers with the greatest benefit of all: diversity in the world of coffee. Supply and demand analysis of Starbucks Price is a factor which affects Starbucks on both the demand and supply side. The price of coffee will determine how many individuals are willing to buy and will buy at a higher price. The company has to keep in mind the maximum price that the customer would be willing to pay or the......

Words: 460 - Pages: 2

Premium Essay

Summary and Analysis of Us Stock Market and the Law of Supply and Demand

...Supply and Demand as it Relates to the Stock Market Supply and demand is one of the most important influences in any economic marketplace. In most industries the law of supply and demand is an accepted theory to explain the price of products and services. One industry that overlooked the significance of the law of supply and demand in the past is the stock market. Experts attributed the Stock Bubble of the 1990s to an overly simple theory. It was believed that rising prices in stocks were caused by an underlying rise of companies’ value. The price of stocks in the 1990s is today better understood as derived from a shortage of equities in the market (Oswin, 2005). The law of supply and demand is a fundamental concept in economics that explains market factors such as the quantity of a product or service demanded by consumers, the supply of products or services that suppliers are willing to produce and the relationship between supply and demand to create market equilibrium. The law of supply and demand also tries to explain what conditions in the market create changes in quantity demand and supplied in the market (Colander, 2008). In his essay, The Relative shortage of Equities, Oswin (2005) describes some of the conditions that affect stock market activity and explains the theories behind the demand and supply of equities, which drive the prices of the market. According to Oswin (2005), the law of supply and demand is the cause behind bear and bull markets. Investors...

Words: 792 - Pages: 4

Premium Essay

Supply, Demand, and Government in the Markets

...3: Supply, Demand, & Government in the Markets 1. Using Microsoft Excel, draw a graph illustrating the supply and demand in this market. 2. What is the equilibrium Price and Quantity in the market? This is where the quantity demanded and the quantity supplied are equal. The corresponding price is the equilibrium price and the quantity is the equilibrium quantity. *Let us take the first line of data from the Spreadsheet as an example: Price- $200 Quantity Demanded- 1000 Quantity Supplied- 2200 Here there is an excess supply amount, so there are more computers than that are actually wanted. At this point, the sellers would recognize there are fewer buyers for their product at the current set price. Now they would attempt attracting buyers for the excess supply available by offering these goods at a lower price. By doing so, according to the law of demand, buyers will now purchase more of the computers and the supply overage will decrease until it eventually disappears. Now the market will reach the intersection point in which supply is equal to demand. *Now we can look at a different scenario in which the demand of computers are higher than the supply. Looking at the last line of data from the Spreadsheet: Price- $25 Quantity Demanded- 2750 Quantity Supplied-1150 This would display a price that is below the intersection point. Because there is such a high demand for the product, the consumer would be willing to pay more to obtain it. As the market price......

Words: 793 - Pages: 4

Premium Essay

Pindyck - Market Demand (Chapter 4.3)

...4.3 MARKET DEMAND Market demand curve is curve relating the quantity of a good that all consumers in a market will buy to its price. From Individual to Market Demand Table 4.2 | Determining the Market Demand Curve | (1) Price ($) | (2) Individual A (Units) | (3) Individual B (Units) | (4) Individual C (Units) | (5) Market (Units) | 1 | 6 | 10 | 16 | 32 | 2 | 4 | 8 | 13 | 25 | 3 | 2 | 6 | 10 | 18 | 4 | 0 | 4 | 7 | 11 | 5 | 0 | 2 | 4 | 6 | 5 4 3 2 Market Demand A B C 0 5 10 15 20 25 30 Summing To Obtain a Market Demand Curve The market demand curve is obtained by summing our three consumers’ demand curves DA, DB, and DC. At each price, the quantity of coffee demanded by the market is the sum of the quantities demanded by each consumer. At a price of $4, for example, the quantity demanded by the market (11 units) is the sum of the quantity demanded by A (no units), B (4 units), and C (7 units). Two points should be noted: 1. The market demand curve will shift to the right as more consumers enter the market. 2. Factors that influence the demands of many consumers will also affect market demand. The aggregation of individual demands in to market becomes important in practice when market demands are built up from the demands of different demographic groups or from consumers located in different areas. Elasticity of Demand Denoting the quantity of a good by Q and its price by P, the price elasticity of......

Words: 543 - Pages: 3

Free Essay

Market Demand and Potential - Lux Soap

...Marketing Mr. M Natrajan Paper: Market Demand / Potential – LUX Soap PRODUCT PROFILE • • • • • LUX is a global brand developed by Unilever. The range of products includes beauty soaps, shower gels, bath additives, hair shampoos and conditioners. LUX started as “Sunlight Flakes” laundry soap in 1899. In 1924, it became the first mass market toilet soap in the world. It is noted as a brand that pioneered female celebrity endorsements. As of 2005, Lux revenue is at 1.0 billion euros, with market shares spread out to more than 100 countries across the globe. Today, Lux is the market leader in several countries including Brazil, India, Thailand and South Africa. For years, LUX has been one of the India top soaps that offer a way to gain smooth and fair looking skin without worrying too much on how old the user is. LUX soap came from one of the biggest corporation in the India today, Unilever. LUX is a personal care brand owned by Unilever. LUX is primarily made from synthetic surfactants, as well as some vegetable oil based soap ingredients, such as sodium palm kernelate. LUX is formulated to be pH neutral, with a pH that is usually between 6.5 and 7.5. As paper title specify, market research is done for the LUX soap to estimate the current demand and market potential. Market research is the process through which one can indentifies the basic problems area relating the product demand, its potential and as conclusion strategies to enhance demand and potential within......

Words: 1320 - Pages: 6

Free Essay

Corn Flour Mill Promotes New Market Demands

...With the improving of the science and technology, the development of CORN FLOUR MILL is becoming more and more quickly. In recent years the development of corn flour mill in China has showed a trend of rising. Below we together take a look at reasons of China's rapid development of corn flour mill. First of all, people’s living standard increases demands for more diversity of food, which requires constant improvement of the new technology. Corn flour mill is also growing up. Secondly, with the continuous development of industry, industrial land is increasing, occupied a large number of cultivation land. Therefore, it is necessary to make use of corn flour mill. Corn flour mill can be used to produce more kinds of food and industrial supplies, which expands value of corn as the planting area shrinks. To sum up, people's pursuit for food and reduction of land area boost development of corn flour mill. The development of corn flour mill effectively meets diversified demands for food as well as improves the use value of corn. Corn flour mill can produce different types of corn products, bringing benefits for the enterprise. However, do you understand structure and technology of corn flour mill? Below, corn processing machinery manufacturers explain to us grinding roller of corn grinder. Roller is one of the major components in corn flour mill. In production you must do a good job of maintaining roller. Damaged grinding roller must be changed in time in avoidance of......

Words: 340 - Pages: 2

Premium Essay

Supply, Demand, & Government in the Market

...Supply, Demand & Government in the Markets Randall Jaeck Argosy University The graph above shows the equilibrium price and quantity of computers in the marketplace. The equilibrium is where the price and demand meet. For the graph above it is 1750 units and a price of $125. If left alone a market would naturally settle into equilibrium. With the market equilibrium price it ensures that the sellers willing to sell at that price and the buyers willing to buy at that price will get what they want. At equilibrium supply equals demand but in some cases the government will interfere with the market adding taxes, price ceilings and price floors. We will take a look at what happens to the market when these occur. First we will look at what would happen if the government imposes a special tax on these computers. If the government interferes with a taxation it would then force the sellers to raise their prices for those computers because the sellers want to maintain their profit margin. The supply curve would shift upwards by whatever the tax amount is. Sellers would sell less computers and if buyers still want these computers they will need to spend more for them because of the tax and the fact that since they now cost more and there would be less to sell. Sometimes governments impose a price ceiling which is an upper limit for the price of the computers, when a price ceiling has been implemented sellers cannot charge more than the ceiling price. If......

Words: 604 - Pages: 3

Premium Essay

Market Demand

...Market Demand The demand for a good or service is defined as quantities of a good or service that people are ready to buy at various prices within some given time period, other factors besides price held constant. And law of demand is the inverse relationship between price and the quantity demanded. It means the higher the price, the lower quantity demanded and vice-versa. A change of demand can be affected by two factors. First, the changes of price result in the changes in quantity demanded. In this term, change occurs only at the point in the curve. Curve line does not shift. Second, changes in the non-price determinants result in changes in demand. This led to curve shifts to the left or to the right. There are 5 factors of non-price determinants of demand. Here are: 1. Taste and preferences. There are many factors that trigger these factors include advertising, promotion, and even the government reports related to specific goods or services. 2. Income. Buying power is closely related to the demand of a product. Increased public income means demand also increases and vice versa. 3. Price of related products. -> Substitute or complementary products. 4. Future expectations. 5. Number of buyers. Market Supply Definition of supply is Quantities of a good or service that people are ready to sell at various prices within some given time period, other factors besides price held constant. The difference between demand and supply is the word sell......

Words: 1492 - Pages: 6

Premium Essay

Supply and Demand Impact on Market Equilibrium

...Explain how changes in supply and demand impact on equilibrium price and quantity Market equilibrium is the situation where at a certain price, the quantity supplied and the quantity demanded are equal. Markets always tend towards equilibrium and, if excess demand or excess supply exists, the market will bid the price up or down until the equilibrium price is reached. The price mechanism determines the equilibrium in the market and consists of the relationship of supply and demand. The equilibrium price and quantity will be changed if there is a shift in either or both of the supply or demand curve. Market equilibrium occurs when the demand and supply curves intersect with each other. As shown in Figure 1, this is when the quantity demanded is exactly the quantity supplied. Figure 1 – Market Equilibrium Supply can be defined as the quantity of a good or service that all firms in a particular industry are willing and are able to offer for sale at different price levels at a given point in time. An increase in supply can be impacted by a range of factors. One of these factors is advantages in technology. If the technology that a firm uses develops, they will be able to make more of the good and therefore the supply will increase. An example of this is iPhones, their technology is constantly improving and therefore their supply will also increase. Another factor is having a good season. For example, if a firm produced mango and the weather was good, the firm would get a good......

Words: 1157 - Pages: 5

Premium Essay

Market Demand and Elasticity

...Market Demand and Elasticity Tank Up is a local quick mart gas station on Route 12, a fairly busy highway most days of the week. Tank Up is the last station eastbound just prior to the entrance ramp to the expressway. This location benefits Tank Up business because drivers often stop in to fill their gas tank and grab a cup of coffee before beginning their journey on the expressway. To increase profits, I am evaluating a price change for coffee. Historically Tank Up sells approximately 300 cups of coffee per day. At $0.79 per cup, annual coffee revenue is $86,268. Options to increase revenue include a) an increase in sales prompted by a price reduction or b) an increase in revenue through a price increase. For the purpose of this evaluation, it is assumed all factors beyond cost per cup and consumer demand are held constant. The supply costs for coffee beans, creamer, cups and other supplies are not a factor in this assessment. Below are the factors considered. Price Elasticity of Demand As noted above, annual coffee revenues are estimated at $86,268. To evaluate price elasticity of demand, a calculation was required to determine if an adjustment in price (increase/decrease) resulted in a change in consumer demand. The first step was to evaluate the impact of increased sales because of price reduction. When reducing the price per cup 13% (to $0.69) sales increased 7% (320 cups per day). Although demand increased, annual revenue declined 7% ($5,897). This......

Words: 1222 - Pages: 5

Free Essay

Artticle on Demand in the Black Market

...Black Markets – Iran’s Smugglers Feel the Squeeze A recent article in the Businessweek August 6 – 12, 2012 spells out an issue that Iranian’s Black Market smugglers are facing; the sanctions on imports and higher fuel prices. This is bad news for smugglers since it will affect their profit. The majority of the Iranian fishermen depend on the small profit from their illegal profession. Most have a dual profession as smugglers by night and fishermen by day. The demand is high for electronic equipment and even food on the Black Market. Items such as cell phones, flat-screen televisions bring in a minimal profit for these smugglers. However, sanctions that are being imposed, and high fuel prices are digging into the little profit that the smugglers are netting. In addition to the sanctions, the smuggled goods are also diminishing the jobs in Iran. According to the Customs and Excise Department every $1 billion in smuggled goods, costs Iran 50K to 60K in jobs (Businessweek, P15). There is an even higher cost to the smugglers; they are risking their lives to bring over these items illegally. Over 80 percent of the electronics in Iran are smuggled into the country. This issue is creating an upward shift, and the cost of basic items is rising due to the lost in value of their currency. Based on the Demand analysis, the increased sanctions are causing a downward shift for the black market to smuggle. Another downward shift is the profit that the smugglers are......

Words: 280 - Pages: 2

Premium Essay

Personal Research Paper on Market Demand

...family, first you take an idea what you need and how much you need. That’s call demand. If you buy something that you don’t need, you are wasting your valuable money. Similarly if you buy something which is not enough to meet your need you will face some problem. Measuring the demand is very important for every marketer. If a marketer could not able to measure the market demand then he will be failed to stay in the business. Before start a business or launch a new product every marketer has to take a measurement of current market demand and future market demand. Knowing current market demand is very important for understanding the current market and future market demand is also as important as current market demand to understand whether the investment will be feasible or not. Because if there is no demand or declining demand in the future then marketer may face loss. Because some investments take long time to come to a break-even point and profit. I can give an example of “Floppy Disk”. In early nineties floppy disk business was very good. Everybody was using this product to storage of their personal and business information. Watching this current demand many investor invested in this sector without measuring the future demand. In late nineties demand of floppy disk drastically fall and now there is almost no demand for floppy disk. So who invested in this sector was a loss project. Measuring market demand affects a business in many ways. Businesses need to purchase raw......

Words: 1718 - Pages: 7