Sorbet Vs Ice Cream Industry

1. Introduction

With a wide range of deserts, it is essential to understand the differences between the sorbet and the ice-cream. As a more common dessert, the ice-cream or gelato is made up mostly from milk and cream which could be flavoured with many types of combination, whereas the sorbet is water ice made from fruit juice, egg whites, and milk.

This essay will have a closer look at the ice cream industry and how it has been manufactured in US, factors which are influencing the supply and the demand in the market of the "sorbet," as well as describing the market structure, the elasticity, and the relationship between elasticity and total revenue.

2. Supply

According to C. Pass and B. Lowes,1998, the supply is described as the number

The frozen desserts industry and "sorbet" manufacturing depend on the labours even though the new technologies had been developed. Also, the supply of labour increases with the wage.

"A better and advanced technology is one of the most significant factors of supply, which helps in expanding the production." (www.economicsdiscussion.net). As a result of this, there is an increase in the supply with a supply curve shifting to the right.

To produce sorbet and recognize the need of keeping up with the competitors, the business should always use new and modern technology. This new technology will help in increasing the supply to the market. The graph below shows how the supply curve is shifting to the right due to the upgrading of the technology.

3. Demand

Demand has been defined as the amount of a particular good or service that the consumer will want and be able to purchase at a given price. The demand curve is usually delineated as a sloping downward from left to the right because price and quantity demanded are inversely related. As an example, the lower the price of sorbet, the higher the demand or number of

Income of the consumers

Consumers ' income indicates what they can afford to purchase. When there is an increase in revenue, the demand for products and services will have a critical improvement. When the consumer is losing the job or has a lower salary, the demand will tend to decrease. An increase in income shifts the demand curve to the right, while a decrease will change the curve to the left.

The price of related products

There are two types of associated goods which can cause a shift in the demand curve: complements and substitutes. Complement goods are products which are not only related to each other, but assets that are used together, and they accomplish one another. An increase in the price of one of them will result in a decrease in the demand of the other one. In contrast, substitute goods are those in which an increase in the price of one will bring an increase in the need for the other. For instance, ice cream and sorbet. The change in the price of ice-cream can impact the demand curve of sorbet. If the cost of the ice-cream become higher than sorbet, then people will tend to consume more