To: Glunt
From: Erik Davis
Subject: Project Part 2 entrepreneur Edward
I have completed my research and analysis for entrepreneur Edwards needs. My findings are provided below.
Event 1 - An growing in income (assuming that his applesauce cream is normal goods). If consumer income increases for any reason, the demand for the ice cream is likely to increase, or shift to the right, causing residuum wrong to rise.
Event 2 An increase in the make sense of potential consumers in the market. If for well-nigh reason the number of state buying the ice cream increases, for instance if your product is gettable in a impudent area because a new grocery store opens, the demand for the ice cream would increase, or shift to the right, increasing the equilibrium.
Event 3 A devolve in the number of firms offering the ice cream. If some of the former(a) ice cream manufacturers were to go out of business, or for some other reason drop out of the market, there would be a decrease in competition among the sellers allowing them to raise their prices.
The affix cut back would decrease, or shift to the left, causing the equilibrium price to increase.
Event 4 An increase in the cost of an input. An increase in the cost of production of the ice cream would delineate the company to charge more for their product since it costs more for them to make. This would decrease the supply for the product shifting the supply curve to the left and increase the equilibrium price.
Event 5 - some(prenominal) time demand increases, or shifts more to the right, than supply does. If two the demand and supply shift in any skid that the demand increases more than the supply does the equilibrium price willing increase.If you want to get a full essay, order it on our website: Orderessay
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