JULY 7, 2023

DEMAND AND SUPPLY

DETERMINANTS FOR TEA

LOGISTICS ECONOMIS FINAL ASSIGNMENT

FROM: L.N.D FERNANDO
TO: MR. BARATHA DEWANARAYANA
COADLM22.2F-008
DEMAND AND DETERMINANTS
The amount of a product that people are willing and able to purchase
at each possible price during a given period of time, everything else
possible,
 Price of the product (p)
 Consumer income (I)
 Price of related product (Pn-1)
 Consumer taste(T)
 Future price expectations(E)
 Demographic factors(D)
 Number of buyers(N)

SUPPLY AND DETERMINANT

The amount of a good or service that producers are willing and ability
to offer for sale at each possible price during a period of time,
everything held constant.

 Price of the product (p)

 Prices of resources (pr)
 Prices of related goods and services (Pyz)
 Price expectation of producers (T)
 Number of producers (N)
 Government policies (G)

ABOUT THE CONSUMER PRODUCT

Consumer product – Tea packet

Price (100g) - RS.100 .00

As a consumer

Price of tea: price of the tea and demand for the same are negative co related. For example, tea
prices decrease, i may be more like to purchase more quantities. And on the other side tea price
is increasing and I will reduce the amount of tea I buy.

PRICE OF TEA DEMAND FOR TEA

PRICE OF TEA DEMAND FOR TEA

Consumer income: Income is another important for demand. Income and tea demand are
positive co related. For example, my income level increases, and I will buy more quantities. And
on the other side my income decreases I reduce the amount of tea I buy.

CONSUMER INCOME DEMAMD FOR TEA

CONSUMER INCOME DEMAND FOR TEA

Consumer taste: Consumer taste can influence the demand. Consumer taste and tea demand
are positive co related. For example, my preference for tea is increasing I will increase demand
for tea. And other side also same.

CONSUMER TASTE DEMAND FOR TEA

CONSUMER TASTE DEMAND FOR TEA

The availability: Available of substitutes can affect the demand for tea. For example, if coffee prices
increase I may switch to tea as a coffee. or if there is another new beverage trend that compete with
tea.so it has also positive co relation.

COFFEE PRICE DEMAND FOR TEA

COFFEE PRICE DEMAND FOR TEA

As a producer
Price of tea: The price of tea increases, producers are willing to supply more quantity. Then they can get
higher profitability. And other side tea prices decrease may lead to reduction in supply as a producer.

PRICE OF TEA QUANTITY OF TEA SUPPLY

PRICE OF TEA QUANTITY OF TEA SUPPLY

Technological advancement: This technological advancement also can impact tea supply. Various
techniques can impact for it.so it can increase production efficiently and reduce cost. So its leading to
higher tea supply.

TECHNOLOGICAL FACTORS QUANTITY OF TEA SUPPLY

TECHNOLOGICAL FACTORS QUANTITY OF TEA SUPPLY

Number of tea producers: An increase in the number of tea producers means an increase in the
quantity of tea supplied. If those numbers decrease, the amount of tea supplied will decrease. This
relationship is positive co related.

NUMBER OF TEA PRODUCERS QUANTITY OF TEA SUPPLY

NUMBER OF TEA PRODUCERS QUANTITY OF TEA SUPPLY

Other factors: other factors also can impact tea supply. Other factors mean, climate conditions, cultural
aspects…etc.

OTHER FACTORS FAVORABLE QUANTITY OF TEA SUPPLY

UNFAVORABLE QUANTITY OF TEA SUPPLY