Question

decision point: determining supply and demand
after some thought, youve decided to use the principles of supply and demand to determine the market (or equilibrium) price of your coffee. consider the following pieces of data. which would help you determine supply? which would help you determine demand?
drag the data onto the correct side of the scale and click submit.
supply
demand
your fixed costs(rent, utilities)
enrollment trends for the last 5 years
number of similar products available for sale on campus
number of students on campus
labor costs for your employees
per capita spending of college students in the area
cost of coffee/supplies used to produce your product

Explanation:

To determine supply and demand for coffee:

• Supply factors relate to production/costs (what affects how much you can offer):
• Fixed costs (rent, utilities), labor costs, cost of coffee/supplies, number of similar products (competition affecting your supply decisions).
• Demand factors relate to consumer behavior/need (what affects how much people want to buy):
• Enrollment trends (student population), number of students, per capita spending (purchasing power).

Answer:

Supply (drag these here):

• Your fixed costs (rent, utilities)
• Labor costs for your employees
• Cost of coffee/supplies used to produce your product
• Number of similar products available for sale on campus

Demand (drag these here):

• Enrollment trends for the last 5 years
• Number of students on campus
• Per capita spending of college students in the area