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factors that will be affecting the Demand and Supply of a given number of products

factors that will be affecting the Demand and Supply of a given number of products



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Published by sunit123
factors that will be affecting the Demand and Supply of a given number of products
factors that will be affecting the Demand and Supply of a given number of products

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Published by: sunit123 on Sep 06, 2008
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In Economics, the market relations between prospective sellers and buyers of a good areknown as Demand and Supply. The price and quantity sold in a market is determined bythe Demand and Supply model. The phrase “supply and demand” was first used by JamesDenham-Steuart in his book named Inquiry in to the Political Economy which was published in 1767. Since the 19
century the theory has been unchanged. There is alwaysa change in Demand and Supply of a particular product in a market due to variousreasons. There are very few products whose demand or supply doesn’t change withrespect to price. These are known as inelastic products. A very good example of perfectlyinelastic product is Penicillin. There are elastic products too whose demand changes withrespect to price and people don’t hesitate to opt for a cheaper alternative. Tea and coffeeare the best example of an elastic product.This concerned report will explain the factors that will be affecting the Demand andSupply of a given number of products. The report has been prepared through in-depthanalysis of the market. The yearly price and sales of various products are examined andcollected to obtain this report. After description of the factors affecting Demand andSupply of each product a graph is provided to understand the future market well. Future prediction of each product is given. Different websites and books were of great helpwhich were acquired from our college library and the library of university of eastLondon. The guidance of our lecturer Ms. Ellie Semsar was very supportive incompletion of the said topic in a report format with proper referencing followed by a bibliographyI. The law of demand states that quantity demanded moves in the opposite direction of  price, and this effect is observed in the downward slope of demand curve. The demand of certain products are analysed below and the factors affecting there demand are listed andelaborated
The demand for various convenience foods will gradually increase in future. There arevarious convenience foods available in the market today. Dry pasta is the leadingconvenience food sold in the US market. In the year 2004 the quantity weight of dry pasta sold was 2446932 pounds at the unit price of $0.36 and the total sales of dry pastawas $1086142. In the following year the unit price remained the same as $0.36 but thequantity of dry pasta sold was 2450666 ponds which produced total sales of $1127520.The demand for dry pasta increased in 2005 and is expected to keep on increasing in thefollowing years. The sales of dry pasta reached $167883 in the year 2006 with a unit price of $0.34 and the quantity of dry pasta sold was 2522206 ponds. The demand of convenience food has kept on increasing due to various aggressive and innovation policies acquired by various companies. There is increase in the brand value and newways of cooking pasta, such as in fry pans. The intensive advertisement on TV alsohelped to increase the demand of convenience food. The main reason for the increase of demand of convenience food is that, it takes much less time to cook and its easy to cook.Manufacturers have tried to rid the meals of their unhealthy tag by offering a range of low-fat, low-salt options to tap into the appetite for healthy eating. These various reasonstend to increase the demand of convenience food in the future.
The market for internet shopping is huge and will continue to grow rapidly. The demandfor internet shopping is high and will continue to increase in the next coming years. Thetotal online market in the year 2004 was estimated to be £6.3 billion. The demandincreased in the following year and the total online market was £ 8.2 billion and 10.9 billion in 2005 and 2006 respectively. It is estimated that the demand for the net onlinemarket will keep on increasing and will reach the staggering amount of £14 billion and£17 billion in 2007 and 2008 respectively. Various factors are responsible for the increasein demand of online shopping. People find it convenient to shop online since it increasestheir individual choice and they get more options which help them to find the lowest prices. However there is threat of least awareness of online shoppers, but steps are beingtaken for more secure environment in the net for the online shoppers. Various sellingregulations (‘DSRs’) are being imposed which gives a customer a right to know who theyare dealing with and the key information of what they are buying. The regulations alsoinclude an unconditional right to cancel within seven days with a full refund and protection against online payment card fraud. These all have created a better and securedenvironment on the internet which is resulting in the rapid increase of demand of onlineshopping.

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