To graphically illustrate this, the following graph can be used. The graph shows a downwards sloping demand curve due to the law of demand. P1 is the current price of tacos, and Q1 is the current demand. If the price is to fall to P2, there is a drastic increase in demand Q2.
ANALYSIS OF THE DEMAND FOR TACOS AMONGT UB STUDENTS 9 Chapter 6 Inferior Goods This is a good for which an increase (decrease) in income leads to a decrease (increase)in the demand for that good. In our findings, 60% of people voted that they would not buy tacos if their income increased. This is showing that tacos is in fact an inferior good because people will switch to another item if their income increased. People voted that the good they would switch to is rice and beans if their income rises (43% which is the majority vote), which means that tacos is inferior to rice and beans. In addition, this refers back to income elasticity where the percentage change in quantity demanded is less than the percentage change in income. This means that the income elasticity is less than 1 when we look at income elasticity. Substitute Goods A substitute good is an alternative product with the same level of satisfaction derived from another good. In our findings, 51% of people said that if the price rise, they would switch to an alternative product. This is indicating that there are substitutes for tacos. In our findings, we found out that the different substitutes for tacos are: Gacho, Burrito, Tamales, Johnny Cake, Other (panades, garnaches, meat pie, and fry jack). The leading substitute was Gacho, which got 29% vote. This means that in our survey, the main substitute for tacos is Gacho. In addition, tacos being a substitute good also means that the cross price elasticity is greater than 1, meaning that the percentage change in quantity demanded is greater than the percentage change in price of another product.
ANALYSIS OF THE DEMAND FOR TACOS AMONGT UB STUDENTS 10 Chapter 7 The market structure can be defined as, the number of firms producing the identical goods and services in the market and whose structure is determined on the basis of the competition prevailing in that market. (Megha M, 2015). There are 4 main types of market structure, which are: Perfect competition, monopolistic competition, oligopoly market structure and monopoly market structure. Monopolistic Competition The Market structure for the Taco's vendors resembles Monopolistic Competition. In a market characterized by monopolistic competition, there are many firms and consumers, just as in perfect competition. Thus, concentration measures are close to zero. Unlike in perfect competition, however, each firm produces a product that is slightly different from the products produced by other firms; Rothschild indexes are greater than zero. Those who manage restaurants in a city containing numerous food establishments operate in a monopolistically competitive industry. Hence, Monopolistic competition is where: They are numerous buyers and sellers. In our findings, 46% of people said that they are
- Fall '20
- Supply And Demand, University of Belize