Description
Use a five paragraph format. The first paragraph should include a statement of purpose and thesis sentence. Use vocabulary from our course. Do not copy and paste from other sources.
Imagine that you have decided to open a small ice cream
stand on campus called "Ice-Campusades." You are very excited because
you love ice cream (delicious!) and this is a fun way for you to apply
your business and economics skills! Here is the first month's
scenario--you order the same number (and the same variety) of ice creams
each day from the ice cream suppliers, and your ice creams are always
marked at $1.50 each. However, you notice that there are days when ice
creams remain unsold but other days when there are not enough ice creams
for the number of customers.
Use your knowledge of the factors
that cause shifts in demand, and in a multi-paragraph essay, provide at
least three reasons why ice cream sales fluctuate in this manner.
(Apply only the factors you think are applicable to explaining this
scenario.) Now assume that a month later, the school allows a competing
student the right to sell ice creams on school property. (The number
of students on campus remains largely unchanged.) What do you think
will happen to the price of ice cream at your campus? Explain in
detail.
Develop a response that includes examples and evidence to
support your ideas, and which clearly communicates the required message
to your audience. Organize your response in a clear and logical manner
as appropriate for the genre of writing. Use well-structured
sentences, audience-appropriate language, and correct conventions of
standard American English.
Explanation & Answer
Thank you for working with me
Running head: DEMAND AND SUPPLY FLUCTUATIONS
Demand and Supply Fluctuations
Author:
Institution:
1
DEMAND AND SUPPLY FLUCTUATIONS
2
Demand and Supply Fluctuations
The success of any business is dependent on the comprehension of economic concepts
particularly supply and demand. Practical application of such knowledge offers a better
understanding of business trends and experience in the running a business. This study focuses on
the influences that affect the supply, demand and sales of an ice cream business near a campus.
According to the scenario, the factors that affect demand and cause fluctuations in sales include;
income, changes in tastes and preferences and the availability of substitutes.
Income provides the buyer with the ability to purchase a product. The higher the income,
the more the goods you can buy...