Thank you, Dr. Sumadi
1 2 3 4 5 Hello Ellen, I enjoyed reading your post. I can agree that there appear to be several factors that affect supply and demand especially in the case of Katrina Candies. I feel that companies tend to be so eager to get their product out and sold that they do not take the time to see if the product is even in demand and whether they are able to meet the demand if it is there. Your thought on statistical analysis was the same as mine and I felt an marginal analysis could have been used as well! Overall Rating: 1 2 3 4 5 Your Rating: 1 2 3 4 5 From the scenario for Katrina’s Candies, examine the key factors affecting the demand for and the supply of a good in general and Katrina’s Candies specifically. Distinguish between a change in demand and a change in the quantity demanded (movement along the demand curve). Propose two (2) methods in which organizations that provide the good may utilize this information. From the Katrina Candies scenario, the key factors affecting demand and supply are number of buyers, price of the good and related goods, taste/preferences of the consumers, and consumer’s income. These factors affect how Katrina’s Candies will be able to produce demanded quantities and how to price the goods for a result of higher revenues and profits. A change in demand and a change in quantity demanded for Katrina’s Candies. Change in demand describes a change or shift in a market's total demand. This change in demand is represented graphically in a price vs. quantity plane, and it is a result of more or fewer entrants into the market and changes in consumer preferences. The shift can either be parallel or nonparallel.
A change in demand is when the whole curve shifts and a change in quantity demanded is movement along the demand curve due to a change in price. Price doesn’t shift the curve. Two methods I would propose for an organization like Katrina Candies to utilize from the above information, is to first target issues resulting from consumer preference. Consumers will prefer sugar free candies which are healthier and also they should concentrate on the advertising of the positive healthy side. Secondly is to focus on price because providing an affordable price will increase demand. 1 2 3 4 5 Impact of Shifts in Demand and Supply Whenever there is a change in one of the factors of either supply or demand, market equilibrium will be affected. Shift in Demand When there is a change of one of the factors of demand like the price of the product and related goods, consumer preferences, or income- there is a corresponding change in the demand curve. For instance, if someone's income grows, then his demand for goods will increase, shifting his demand curve to the right. This will lead to a higher quantity being consumed at a higher price, ceteris paribus . Conversely, there can be a negative effect that