Economics Report: An Analysis of Spotify, Adidas, and Economic Impacts

This economics report provides an in-depth analysis of Spotify and Adidas, examining various economic principles and their real-world applications. The report begins by exploring the factors influencing Spotify's success in Latin America, including the impact of a young, music-loving population and easy licensing facilities. It delves into the concept of cross-price elasticity of demand, using examples to illustrate the relationship between goods. The analysis extends to the impact of popular musicians on Spotify's demand. Part B shifts focus to Adidas, examining its operations within a monopolistic competition market, highlighting its competitors, product differentiation, and marketing strategies, including the use of celebrity endorsements. The report also examines the effect of investment on aggregate demand using the investment multiplier effect. Finally, Part C delves into macroeconomic risks and presents a graph comparing real personal income with real gross domestic product, offering insights into the U.S. economy's performance over time.