Analysis of Demand and Supply

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Discussion A List of the 10 Commodities I Use on a Daily Basis Some of the 10 commodities I utilize on a daily basis include; sugar, soap, ballpoint pen, salt, toothpaste, coffee, body lotion, beans, shoe cream, and apple fruits. The product I select for the purpose of this analysis is coffee. Jamie: Causes of Shifts in Supply and Demand for Coffee A shift in either the demand or supply of coffee could be caused by a number of things. I will start with factors that could trigger a shift in the demand curve of my product of choice. The demand curve according to Mankiw (2008), shifts "if something happens to alter the quantity demanded at any given price." To begin with, customer preferences could bring about a shift in the demand for coffee. In this particular case, the amount of coffee consumers demand would increase were consumer's preferences to change in favor of coffee. The reverse is true. A shift in demand could also be brought about by changes in price of other related goods. Here, an increase in the price of complimentary goods, i.e. sugar would reduce the quantity of coffee demanded by customers of the same at any given price. On the other hand, was the price of a substitute good i.e. tea to increase, the quantity of coffee demanded (at the prevailing prices) would increase. The reverse is true in both instances. Changes in income could also lead to a shift in demand. As people's income increase, their demand for coffee would most likely increase and vice
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