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Demand, Supply and Equilibrium
Angelica Sylvain
Columbia Southern University
Macroeconomics
Brian Bennett
August 7, 2021
Demand, Supply and Equilibrium
When it comes to changes in demand, demand shifting is considered a distinct phenomenon, but demand moving is sometimes regarded as a subset of demand shifting as the curve bends the shape of the curve is determined by the price and quantity requested. A shift in the form of the curve may be caused by a shift in the effect of external factors such as the prices, tastes, and expectations of competitors. Changes in demand influence the demand curve and adjustments along the demand curve occur as a result of these shifts in supply.
As the price of the commodity fluctuates, so does the amount of the commodity require. When a number of factors other than price impact the demand for a commodity a shift in the demand curve takes place.
When there is a balance between supply and demand, the price of a good or service remains stable. Reduced prices, which in turn lead to higher demand, are the most likely outcome of an oversupply of goods or services. Commodities and services have an inverse connection in that when items and services become scarcer, prices rise and demand drops, respectively(Shifts in Supply and Demand, an Example Using the Coffee Market – FreeEconHelp.Com, Learning Economics… Solved!, nod).
Nescafe is the brand name for both the coffee and the product (Coffee). A significant portion of our worldwide supply chain is made up of smallholder farmers from all over the world, which provides us with a significant competitive edge. It includes 30 different countries, each with its own set of threats and difficulties. As the demand for coffee has grown over the years, growers have faced a number of challenges, including those related to profitability and human rights, as well as the influence that climate change is having on the locations where coffee is grown and harvested. There is a good likelihood that the price of coffee will increase in the near future. A drastic shift in supply and demand has had an unforeseen impact on the market’s equilibrium price and quantity, resulting in a change in the market’s equilibrium price and quantity. Despite the fact that everyone has a unique sense of taste, the demand curve for Nescafe has shifted in recent years(Coffee, nod).
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