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Project Part 2

In: Business and Management

Submitted By b00stin
Words 255
Pages 2
Project Part 2
Entrepreneur Edward
Date: 7/14/12
To: My Boss

I have researched ice cream and the effects of supply and demand associated with it. I have found several reasons for the increase or decrease in supply and demand and thought you may be interested in my findings.
The first issue I have found would be the seasonal changes in the area that the ice cream would be sold. Customers seem to demand ice cream when the weather is hot and they are looking for a way to cool off. So, in the spring/summer months the demand would be high. When the season changes to fall/winter the demand seems to shift to the lesser. Climate of the area has a huge effect on ice cream sales.
Secondly, a change in taste could shift the demand to less, People’s taste changes from time to time and there are other substitutes to ice cream. Also if people were to start dieting that could also affect the demand for ice cream.
An increase in the price of sugar, and dairy would shift the supply curve to the lesser. With an increase in the cost of making ice cream it would in turn cause companies to order less and raise prices. Therefore people would be paying more for their beloved ice cream.
An increase in electricity costs, cow feed, natural gas could also effect the supply curve in a negative way. Increasing the cost of production will shorten supply and increase costs over...

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