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Managerial Economics - Supply and Demand Curve

Examine the key factors affecting the demand for and the supply of a good for a candy company selling sugar-free candy. Distinguish between a change in demand and a change in the quantity demanded (movement along the demand curve).

From the above, indicate the factors that are responsible for a shift in demand; and explain how the change is effected by these factors.

From the above, indicate the factors that are responsible for a shift in supply; and explain how the change is effected by these factors.

Examine the key factors that influence the supply and demand of coffee and propose two (2) methods in which organizations that provide coffee may utilize this information. Provide a rationale for your response.

Solution Preview

The key factors affecting the demand for a good for a candy company selling sugar free candy are the number of suppliers of the good, the availability of substitutes for the good, and the number of candy companies that sell sugar free candy. The availability of complement goods and the expectation of the future demand for sugar free candy are also factors that affect the supply. Income of consumers, preference of consumers, and the price of goods affect the demand. The supply of goods for candy company selling sugar free candy are affected by the price of the good, the elastic of supply, technological improvements in making the goods, and expectations of future prices. A change in quantity demanded is a movement on the demand curve. This follows the law of demand according to which if all things are equal, an increase in prices leads to a ...

Solution Summary

The answer to this problem explains supply and demand change. The references related to the answer are also included.

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