Therefore, when organic companies are expected to increase the production of food because of a high demand and high price of the production, it will happen to fulfil the demand in the market. Nevertheless, when the demand decreases, the demand curve will shift to the left, and so the price of the grains will fall too. This is because when there is a decrease in demand, the quantity also decreases because it could lead to a loss if there are too many products that are not being sold in the
The difference between the two is due to the negative externalities that occur, such as waste from production of sugary drinks as well as the health risks of consuming them. Producers only consider their private benefits, thus the free market equilibrium will be at (P’, Q’). Soda is over-consumed by Q’ minus Qm units. So, as the marginal social cost(MSC) is greater than the marginal social benefit(MSB), there is a welfare loss(◀). If indirect tax were to be implemented on sugary drinks, the marginal private cost(MPC) curve will shift upwards.
Coca-Cola creates value to its brands and with good performance to convince people to buy their products. The company heavily invested lots of capital to advertise the products all over the world. While earning good profit, innovation still one of the important strategies in Coca-Cola to gain more wealth. Different new products and packages could attract people to buy. For instance, to run a success business, a firm must know how to dissolve in different culture.
c. My results also matched my prediction regarding the amount of carbohydrates left after fermentation in the flasks. Based on my predictions, there should be more carbohydrates left in the experimental after fermentation since there was less alcohol produced. The lower percentage of alcohol suggests that there was less reactions that occurred, therefore causing less alcohol
Due to imposition of price ceiling, the quantity supplied is lower than that of in normal times. In the above diagram the quantity supplied Qs is corresponding to the price Pc, which is the ceiling price. This quantity Qs way is lesser than the equilibrium quantity Qe which the suppliers would have supplied normally at the equilibrium price Pe. The imposition of price ceiling also creates a high demand in the market. Now the consumers would be demanding the quantity Qd at a price Pc which is lower than the equilibrium price Pe.
In USA the revenues from gas taxes are used in many ways, for example, to reduce budget deficits, to decrease existing marginal tax rates (the rates on an additional dollar of income), or to offset the costs that gas tax would impose on certain groups of people. Raising the cost of using gas by imposing tax would increase the cost of producing goods and services such as electricity and transportation. Sometimes gas tax may have a negative effect on the economy. High price of goods and services can diminish the purchasing power of earnings of people and reduce their real wages, which would have an effect of reducing the amount of hours worked or goods produced by people, and therefore, decreasing the overall supply of labor, amount of money invested, further reducing total output of the country's economy. In USA taxes raised from taxing gas are also used to offset or reduce some of the negative economic effects of other taxes, for example, to reduce the existing marginal rates of income or payroll taxes, which would have positive effects on the
policy which makes GD/DO stockouts by ?purchasing the wrong products a lot? but ?having no more extra area or money to purchase the correct ones to meet the demand?. The inefficiencies in Barilla?s distribution system are mainly caused by huge fluctuations in demand and inaccurate forecast. The reasons for making the distributor?s order pattern look like this?increase in variability in its supply chain -- are illustrated below: LONG LEAD TIMES: it takes approximately 8-14 days for the receipt of items at the distributors end from the date placing the order and the average lead time is 10 days. Such long lead time contributes to variability and reduced service levels.
Inflation is the rate at which the general level of prices for goods and services is rising, and, then purchasing power falling over a period of time. When price level rises, dollar buys fewer goods and services. Therefore, inflation results in loss of value of money. Inflation is divided into two categories Cost-push and Demand pull inflation: Cost-push inflation means that prices have been hiked up by increases in costs of any of the four factors of production such as (labor, capital, land or entrepreneurship) when companies are already running at maximum production capability. With higher production costs and productivity at it maximum, companies cannot maintain profits by producing the same amounts of goods and services.
1.2. Product Differentiation This refers to differentiation that aspires to make a product more attractive by contrasting its unique qualities with other competing products (Investopedia, 2015:1), as in the case of Coca-Cola, other soft drink brands. Successfully adopting this strategy would have a company gaining a competitive advantage, as the customer would then view the product as unique or superior. This is what coca cola has managed to do, and has managed to do it on a scale that is globally unique, and globally recognized. Much proof would indicate that Coca-Cola has definitely chosen a differentiation strategy since its early days.
The first section addresses the analysis of the challenges that has led to downward trajectory of soda sales. The second part addresses the master brand in line with vision 2020. Then the last section explains the recommendation as well as the conclusion. Analysis on Substituting Beverages The coffee chain has proved to be the primary substitute for sugary beverages such as soda. This has affected Coca-Cola directly in terms of soda sales which were the major source of revenue for Coca-Cola.