Description
You are required to pick a product or service you use in your everyday life and describe the market for this product. Please make sure to address the following questions:
1. What factors influence the demand for this product? What factors influence the supply of this product?
2.How have these changes in supply and demand affected the equilibrium price of this product?
3.Do you anticipate any changes to the demand and/or supply of this product in the near future? If so, what is driving these changes?
Explanation & Answer
Please view explanation and answer below.
1
Demand and Supply
Name of Student
Student Id
Name of Institution
Name of Professor
Due Date
2
Introduction
Coffee is my favorite drink used daily. The drink is consumed two to three times in a single day,
depending on several factors. Different considerations affect my decision-making and choice
preference depending on location, prices, personal purchasing power, and availability o coffee
drinks in the goods market (Grabs, 2020). This paper will discuss the factors influencing the
demand and supply of coffee in the goods market and how they have caused consumption pattern
changes. The paper will also investigate how these factors influence equilibrium quantities and
prices in the market any future changes in anticipation of coffee supply and demand.
Factors affecting coffee demand.
Personal income. Income plays a crucial role in coffee consumption decisions. Consumption was
low during the early days when income was zero; as I started earning some wages, my
consumption increased to three cups in a day. However, during the covid-19 period, there were
no earnings, my income reduced, and my consumption of coffee reduced to one cup in a day or
even zero. Hence coffee demand increases with an increase in consumer incomes and declines
when income reduces.
Consumer expectations on price changes. Du...
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