I mentioned in my email to you yesterday that this series will start with a bang, and the following fact certainly hit me like a ton of bricks:
To analyse the change in demand due to some forces in the market. The Coca-Cola Company claims that the beverage is sold in more than countries.
Being a bookkeeper, Frank Robinson also had excellent penmanship. About nine servings of the soft drink were sold each day. Untilthe soft drink, marketed as a tonic, contained extracts of cocaine as well as the caffeine-rich kola nut. The company produces concentrate, which is then sold to licensed Coca-Cola bottlers throughout the world.
The bottlers, who hold territorially exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners.
The bottlers then sell, distribute and merchandise Coca-Cola to retail stores and vending machines. The Coca-Cola Company also sells concentrate for soda fountains to major restaurants and food service distributors.
The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand name. In response to consumer insistence on a more natural product, the company is in the process of phasing out E, or sodium benzoate, the controversial additive used in Diet Coke and linked to DNA damage in yeast cells and hyperactivity in children.
The company has stated that it plans to remove E from its other products, including Sprite and Oasis, as soon as a satisfactory alternative is found. Demand for coca cola is also influenced by the change in price of relative goods. In case of coca cola there are number of substitute goods available in the market, we have Pepsi, Miranda, limca, spirit, etc.
In case of coca cola, if there are hard core consumers who prefer the taste of coca cola, even if the price of coca cola increases, the demand will remain the same. But if the consumers have no taste or preference of coca cola, then if the price increases the demand decreases.
As a result consumer was shifting from coca cola to other natural drinks so therefore the demand for coca cola decreased. TIME Time is an important factor that affects the demand of coca cola e.
From this figure we can see that when the income of the consumer increase in the future then the demand for coca cola increases. It states that if the price of a product increases, quantity supply will increase as the supplier will be willing to supply more to earn more profit.
The law shows that there is a positive relationship between price and quantity supply. This show as the prices increases the producers are willing to supply more to earn more profit. In case of coca cola this holds true as the price of coca cola increases there will be increase in supply upto a certain level as there are other constrain like easy availability of closed substitute.
In the long run if the producer continuously increases the price of coca cola then the demand for coca cola will fall down because of various substitutes available in the market. As stated in the law of supply, the price is positively related with quantity supplied for coca cola, in short run if there is an increase in the price of coca cola, the producers will be willing to produce more of the product.
In the case of coca cola there are large number of consumer, as a result the supplier are willing to supply more to cater the needs for the large number of customer. Includes labour cost, machinery etc. Shift in supply curve means change in quantity supplied due to others factors while price remains the same.
Upward shift takes place when the supplier is able to supply at less at a same price. Downward shift takes place when the suppliers are willing to supply at same price. Price elasticity is found to be relatively elastic.
This means if there is small change in price lead to the big change in quantity demanded. Therefore we can say that coca cola is elastic in nature and its elasticity for demand is more than 1. In the case of coca cola substitutes are easily available in the market. The market is already flooded with many aerated drinks.
So even if there is a increase in the price of coca cola, the consumers will shift their consumption from coca cola to aerated drinks because of easy availability of related substitutes.Box and Cox () developed the transformation. Estimation of any Box-Cox parameters is by maximum likelihood.
Box and Cox () offered an example in which the data had the form of survival times but the underlying biological structure was of hazard rates, and the transformation identified this.
The most basic laws in economics are the law of supply and the law of demand. Indeed, almost every economic event or phenomenon is the product of the interaction of these two laws. The law of supply states that the quantity of a good supplied (i.e., the amount owners or producers offer for sale) rises [ ].
Published: Mon, 5 Dec There are generally three types of elasticity of demand, which are price, cross-price and income elasticity of demand.
These three will be explained individually in order in the following paragraphs. Essay 1 Featuring Jeffrey Gundlach The Moment of Truth for the Secular Bond Bull Market Has Arrived By John Mauldin “The moment of truth has arrived for [the] secular bond bull market![Bonds] need to start rallying effective immediately or obituaries need to be written.”.
SAMPLE PAPER II ECONOMICS Class - XII Maximum Marks Time: 3 hrs. BLUE PRINT Sl. No. Form of Very Short Short Answer Long Answer Total Questions (1 Mark) (3, 4 Marks) (6 Marks).
To know the behavior of consumer when the price of a product increases or decreases. To analyse the change in demand due to some forces in the market.
INTRODUCTION Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines internationally. The Coca-Cola Company claims that the beverage is sold in more than [ ].