Coca Cola

2. Total revenue falls as the price of a good is raised, if the demand for the good is ( )

Fill in the matrix below and describe how changes in price or quantity of the goods and services affect either supply or demand and the equilibrium price. Use the graphs from your book and the Tomlinson video tutorials as a tool to help you answer questions about the changes in price and quantity

Constructed Response Directions: Read each question carefully and write your response in the space provided following each question. Your responses will be evaluated on content accuracy and organization.

Fill in the matrix below and describe how changes in price or quantity of the goods and services affect either supply or demand and the equilibrium price. Use the graphs from your book and the Tomlinson video tutorials as a tool to help you answer questions about the changes in price and quantity

Figure 4 in Appendix A demonstrates the supply and demand of white potatoes. In the short run price, demand and supply with all increase because of the commodity being added to the program. While in the long run both supply and demand will increase. Price will decrease because consumers will keep demand high enough to have equilibrium at a lower price than in the short run. By adding the proposed changes white potato farmers will be better off.

1.) Competing global markets can make prices of the products we buy decrease. If your produce is cheaper, then which of the following is most likely to be true?

Apple juice and orange juice are substitutes for consumers, so the fall in the price of apple juice decreases the demand for orange juice. The demand curve for orange juice shifts leftward. The increase in the wage rate paid to orange grove workers raises the cost of producing orange juice. The supply of orange juice decreases and the supply curve of orange juice shifts leftward. The net effect of these events decreases the equilibrium quantity but has an undetermined effect on equilibrium price. If supply decreases by more than the demand, the shift in the

Sport utility vehicles increase in popularity, thus increasing the demand for the workers who make them.

The sale and production of a commodity depends on numerous factors and market forces. Mainly, demand and supply of that particular commodity or good. The demand and supply of the commodity in turn depends on income of the consumers, price of substitute goods, price of complementary goods, change in consumer’s taste, costs of production, increase or decrease in various taxes etc. All these market forces either increase or decrease the demand and supply of a

c. Suppose the market price is $5. What problem would exist in the market? Does it lead to surplus or shortage? How do you expect this problem will affect the price? Indicate this on the supply and demand graphs.

This causes the price and the quantity move in opposite directions in a supply curve shift. Also, if the quantity supplied decreases at any given price the opposite will happen.

Describe what has occurred to change the demand for, or the supply of, the good or service, and market prices of those products or services

PepsiCo, one of the leading beverage and snack companies in the United States and abroad, is affected by both global and domestic environmental factors. These factors, along with changes in technology, all impact and shape the organization and affect marketing decisions. The article “PepsiCo Pops for China,” written by Ruthie Ackerman and published by Forbes.com, reviews Pepsi’s decision to invest billions into the Chinese market audience. This paper will review the article, identify environmental factors that shape the organization and impact marketing decisions, and discuss how technology plays a role in those decisions. Alternatives

Figure 2 demonstrate how any change in one of the other determinants causes demand to rise or to fall by shifting the whole curve to the right or the left. Other factors that determinates of demand

Using appropriate diagrams, discuss how an increase or an improvement in the following non-price determinants of supply would change equilibrium prices and quantities.