Demand and Supply Analysis for a Firm

This report analyzes the demand and supply conditions for a firm's product, evaluating trends over time and their impact on the industry. It examines price elasticity of demand, considering factors like substitutes and consumer responsiveness to price changes. The report also assesses how price elasticity affects pricing decisions and revenue growth, using data and graphical representations to support its analysis. The provided references include studies on Coca-Cola, which is used as an example throughout the report.

Explore the supply and demand conditions for your firm’s product.
a) Evaluate trends in demand over time and explain their impact on the industry and
the firm. You should consider including annual sales figures for the product your
firm sells
The aim of assessing trends is to decide whether individual can apply them to forecast upcoming
transformation moreover whether a fastidious trend has some significance for individual’s firm.
When individual recognize a trend which impacts individual’s marketplace or individual’s
processes, individual can arrange some activities that contradict the trend. Individual have to
assess the range, route and path of a trend previous to individual can respond to it.
Total customer expenditure (TE) is a further critical purpose of price elasticity of demand. It will
be the alike as total revenue (TR) received through firms before removing expenses.
According to Sloman, when demand is in flexible, a boost in cost directs to a increase in total
expenses of customers for that good and therefore a raise in the entire profits that the firm
collects also vice versa.
When demand is flexible - a reduce in cost leads to an increase in whole spending of customers
for that good, thus, the firm full proceeds will go up and vice versa.

a) Analyze information and data related to the demand and supply for your firm’s
product(s) to support your recommendation for the firm’s actions. Remember to
include a graphical representation of the data and information used in your analysis
The demand along with supply of commodities is at the same time as a consequence of a variety
of aspects which have an effect on it which it takes in the cost of the commodities, consumers go
through and first choices, price of production, usual circumstances, transportation situation as
well as government guiding principles. This factors control demand in addition to supply
absolutely or pessimistically. For instance in price of production if it’s elevated the cost will
climb up as well as this in return will show the way to low demand in addition to less supply. If
the convey is easier then the demand with supply of the commodities will be far above the
ground. As of the diagram the increase in demand is as effect of reduced in cost although
enhance in amount raises supply of a product.

III. Examine the price elasticity of demand for the product(s) your firm sells.
a) Analyze the available data and information, such as pricing and the availability of
substitutes, and justify how you determine the price elasticity of demand for your
firm’s product
Demand curvature refers to the amount of the superior that a purchaser is enthusiastic to
purchase as well as capable to purchase above a period of moment, at a convinced price is
identified as the amount required of that first-class rule of require: It is usually showed as an
opposite relation of amount demanded as well as price; the superior the cost of the invention, the
fewer of the customer will require From the outline we be able to articulate that while the cost of
invention enhances require decreases and vice versa. In folder of coca cola there are numeral of
replacement goods obtainable in the marketplace, we contain Pepsi, Limca, spirit, Miranda, etc.
at the present if the cost of coca cola enlarges as of Rs 12 to Rs 20 while the cost of additional
aerated drinks stay the similar then the require for coca cola will descend.
b) Explain the factors that affect consumer responsiveness to price changes for this
product, using the concept of price elasticity of demand as your guide
At this time is a straight relationship among profits of customer and require. At the present coca
cola being a standard good, but there’s an enlargement in profits, the requirement will enlarge as
well as vice versa. Flavor as well as partiality Taste and preferences of the clients also pressure
for the requirement to superior level. In folder of coca cola, if there are solid core customers who
desire the flavor of coca cola, still if the value of coca cola amplify, the require will stay the
similar. Other than if the customers contain no taste otherwise preference of coca cola, after that
if the cost increases the require decreases
c) Assess how the price elasticity of demand impacts the firm’s pricing decisions and
revenue growth
While goods are replacement of every other then the irritated elasticity of requirement is
optimistic. E.g. if the cost of coca cola amplify, this will guide to enlarge in the requirement for
other aerated beverage. If the value of coca cola amplifies as of Rs 5 to Rs 6 followed by the
requirement for coca cola will enlarge from 40 to 50 units it explain the method in which

customers acquire a few first-class as a consequence of modification in his earnings.
Revolutionize in Demand% transform in Income because there is an optimistic connection
between proceeds of the customer and amount require for coca cola, so we be able to state to
facilitate coca cola is a standard good.
References
Johnson, V., & Peppas, S. C. (2003). Crisis management in Belgium: the case of Coca-
Cola. Corporate Communications: an international journal, 8(1), 18-22.
Adeyemi, S. L., & Salami, A. O. (2010). Inventory management: A tool of optimizing resources in a
manufacturing industry a case study of coca-cola bottling company, Ilorin Plant. Journal of social
science, 23(2), 135-142.
Bredahl, M. E., Meyers, W. H., & Collins, K. J. (2014). The elasticity of foreign demand for US
agricultural products: the importance of the price transmission elasticity. American Journal of
Agricultural Economics, 61(1), 58-63.
Dhar, T., Chavas, J. P., Cotterill, R. W., & Gould, B. W. (2005). An Econometric Analysis of Brand ‐
Level Strategic Pricing Between Coca‐Cola Company and PepsiCo. Journal of Economics &
Management Strategy, 14(4), 905-931.

Sen, A. (2000). Microeconomics: theory and applications. OUP Catalogue.