eco100 term test1 with answer

The coffee served in Second Cup is also high quality and the drinks available strongly rival those in Starbucks. In the past decade there has been an explosive growth of 157% in the area of coffee shop market. Canadian coffee market share, new companies have limited to no space for growth in North America. Second Cup’s market share at the Canadian market is about 8%.Upon these facts and analysis there is an unlimited growth possibilities in the coffee market in Canada. There are different factors that do influence in the purchase of coffee from these outlets and the the way these coffees are priced. Customers are reluctant to get coffee from these outlets as the prices are too high than the coffees that could be made at home. There is a huge conflict between the pricing of coffees at these places and homemade ones. Coffee shops are determined to serve the best quality coffees which are been imported from South America and Africa, due to the rise in oil prices transportation charges have also been increased. And also due to different global climatic conditions the prices of these gourmet coffee beans have been increased.

A recent primary research survey has found that 70% of occasional coffee drinkers view the Mr. Coffee brand as an inferior or budget coffee brewing device that does not make a superior cup of coffee (Appendix, Opinion survey). Brands such as Keurig, Cuisinart, and DeLonghi inspire more thoughts of quality coffee than Mr. Coffee. Other consumers are opting to spend several dollars per cup of coffee at coffee houses such as Starbucks, Caribou Coffee, Dunkin Donuts, and even McDonalds (Appendix, Opinion survey).

When people have more disposable income it is very common for them to go out to eat more often to casual dining restaurants such as Olive Garden. Meanwhile when people have less money they prefer to eat at places such as McDonald’s because it is less expensive. Knowing this we can infer that McDonald’s is an inferior good and casual dining places like Olive Garden are normal goods. It is very true that the demand for normal goods decreases as income decreases also and it is very much true that when people have less money their demand for inferior goods increases.

Answer the next question on the basis of the following production possibilities tables for countries Alpha and Beta:

received an accuracy level of 98%, which would indicate that John finds this level of reading

In the poverty simulation I played the role of a 16-year-old girl named Connie Chen who was 7 months pregnant. My father had just gotten laid off from his job and my mother was the only one bringing in income for our family. Our monthly expenses exceeded our income which forced us to choose between basic necessities. Cultural considerations weren’t mentioned in our packet, but since we were of Chinese decent it is possible a lack of knowledge in navigating the U.S health system would be a barrier to receiving necessary healthcare. The Chinese culture also puts less emphasis on individual feelings and more emphases on loyalty to the family, making it important to include the whole family in decision making.

Reduction below list or catalog price that is negotiated in setting the price of goods.

Thank you for coming in last week. I have looked at your portfolio, and have some initial observations. These are not specific recommendations, but rather investment issues to think about, based on your specific situation.

Formulate a reason why the elasticity of demand is an important consideration when analyzing the impact of a shift in supply and why the elasticity of supply is an important consideration when analyzing the impact of a shift in demand. Include at least one (1) example in each scenario.

7. Which of the following must be true if a firm is experiencing economies of scale?

The two possible outcomes for the AS being positively sloped are the profit effect and the misperception effect. The profit effect are the output prices that will rise relative to the input prices. The misperception effect is when the produces can be misled by thinking that the relative prices of the items which they are producing are rising and they mistake the increase in the production.

Every individual buys a different set of goods than other individuals. When incomes rise, individuals buy more normal goods and less inferior goods. Normal and inferior goods are decided based on individual preference because everyone is different and therefore have different likes. I consider a normal good to be a plane ticket to Hawaii and an inferior good to be a train ticket to Trenton, NJ. A plane ticket to Hawaii can cost up to a thousand dollars and sometimes more while a train ticket to Trenton costs around 20 dollars. When my income raises, I am more willing to buy a ticket to Hawaii and spend a weekend there than a weekend in Trenton.

Statistics show that over half of the American population consumes coffee on a daily basis. You may drink coffee hot, cold, mixed, or even in a frappuccino. Individuals are able to make coffee at home, or buy it on the go. Coffee provides people with caffeine, which ultimately gives energy for hardworking people all around the world. The main focus for this paper will cover the following topics, with coffee as the basis: causes for shifts in supply and demand, how coffee supply and demand influence price, quantity,

When the price of a good rises the quality demanded falls, if we think about how much does it falls. To figure out by how much it falls we must calculate the price elasticity of demand which is calculate by how responsive demand is to rise in price. Also, the price elasticity of supply measures the responsiveness of quantity supplied to a change in price.

The consumer market is segmented according to age as well as preferences. People working in offices located close to the coffee bar and on sophisticated teenagers. Younger consumers are often willing to spend more on fancy coffee blends and signature drinks; the health-conscious would be willing to pay extra for “healthier” substitutes such as organic products; My market research shows that these are the customer groups that are most likely to buy coffee products. Since coffee consumption is universal across different income categories and mostly depends on the level of higher education.