Assignment:
Instructions: Respond to the discussion below with a 275 word minimum not including the reference. Analyze their situation further or ask them questions about their scenario.
If you use any outside resources please reference and cite APA format. Responses should be complete and free from grammatical or structural errors. No more than 10 percent of a post should be direct quotes. 100% original work. No Plagiarism!
Applying Supply and Demand:
Demand is the desire and ability to consume certain quantity of a particular good or service at certain prices at particular point of time. Demand curve is a graph that uses to record the demand of the market (Flynn, McConnel, Bruce, 2012). Demand is usually downward sloping because there are inverse relationship between quantity demanded and price.
Supply is the quantity of goods and services that producers or firms are willing to produce or offer for sale at a particular time or place at a given price, with all other factors being held constant. Supply Curve is a graph showing the relationship of quantity supplied and price of product that businesses are willing to sell (Flynn, McConnel, Bruce, 2012).
The U.S. poultry industry is the world's largest producer of poultry meat. U.S. consumption of poultry meat is considerably higher than beef or pork, but less than total red meat consumption. Considering the attention given during our holiday seasons, chicken and other poultry is in high demand during these times.
Using this analysis alone the shift in demand generally is upward, actually creating that inverse relationship, but not necessarily due to price but strictly demand. On the other hand, supply remains the same during this same timeframe since producers have already analyzed their market pricing as well as their goals intended to at least maintain revenue during this season.
In my opinion, producers look very closely at their competitors in their decision-making process to be competitive but remain safe in order to survive seasonal changes.
Since chicken does not have a substitute in product the shifter affected would be a price shifter. Additionally, there are shifter changes in supply since price would be a factor.
Some producers will limit the amount of supply so that they will stay competitive but also remain steady in the market while producing a product that is acceptable to those who may not necessarily care about taste compared to price.
In this particular scenario, the equilibrium price and quantity remains balanced since market price and market quantity remained the same.
Reference
Flynn, S.M., McConnel, C.R., Brue, S.L. (2012) Economic. Global Edition. America, New York: McGraw-Hill