Scottish Strawberry Jam Demand and Supply Curves - 275 Words

Scottish Strawberry Jam Demand and Supply Curves (Essay Sample) Content: Scottish Strawberry Jam Demand and Supply curvesNameInstitutionScottish Strawberry Demand and Supply curvesFirst case: Very rainy in Scotland caused a poorer strawberry harvest than normal
Poor harvest will subsequently imply a reduction in supply. The supply curve will shift to the left causing a change in quantity demanded from Q1 to Q2. This is due to an increase in price leading to a decrease in consumer purchasing. Equilibrium quantity and price shifts to the left, quantity demanded shifting from Q1 to Q2 and price equilibrium from p1 to p2. Suppliers will be trying to contain the market to normalcy, offsetting shortages through increase in price. Second case: The jam company increased the amount of advertisingIncrease advertisement will consequently lead to an increase in demand from Q1 to Q2, and the demand curve shifts from D1 to D2. This will create a shortage in the market and as a result, suppliers will increase the price from P1 to P2 so as to contain th e market. However, the price increase will not affect the demand by a big margin as consumers tries to adjust to the new price to continue enjoying this product.Third case: The UK government has decided to subsidize all jam producers in Scotland in order to boost export.
With the subsidies, there will be increased supply of strawberry in the market. Equilibrium price will shift from p1 to p2 as suppliers will be making an effort to offset surp... Scottish Strawberry Jam Demand and Supply Curves - 275 Words Scottish Strawberry Jam Demand and Supply Curves (Essay Sample) Content: Scottish Strawberry Jam Demand and Supply curvesNameInstitutionScottish Strawberry Demand and Supply curvesFirst case: Very rainy in Scotland caused a poorer strawberry harvest than normal
Poor harvest will subsequently imply a reduction in supply. The supply curve will shift to the left causing a change in quantity demanded from Q1 to Q2. This is due to an increase in price leading to a decrease in consumer purchasing. Equilibrium quantity and price shifts to the left, quantity demanded shifting from Q1 to Q2 and price equilibrium from p1 to p2. Suppliers will be trying to contain the market to normalcy, offsetting shortages through increase in price. Second case: The jam company increased the amount of advertisingIncrease advertisement will consequently lead to an increase in demand from Q1 to Q2, and the demand curve shifts from D1 to D2. This will create a shortage in the market and as a result, suppliers will increase the price from P1 to P2 so as to contain th e market. However, the price increase will not affect the demand by a big margin as consumers tries to adjust to the new price to continue enjoying this product.Third case: The UK government has decided to subsidize all jam producers in Scotland in order to boost export.
With the subsidies, there will be increased supply of strawberry in the market. Equilibrium price will shift from p1 to p2 as suppliers will be making an effort to offset surp...