Question

In: Economics

Only one thing can cause movement along a product’s demand curve --- that is, cause a...

Only one thing can cause movement along a product’s demand curve --- that is, cause a change in quantity demanded for that product --- and that’s a change in that product’s price. On the other hand, there are five key variables that can cause a product’s demand curve to shift to the left or right --- that is, lead to a change in demand. Coca-Cola is experiencing shifts in the U.S. demand curve for its famous cola soft drink, as the huge post-World War II “Baby Boom” generation has aged beyond their prime soft drink consumption years, and as the smaller generations behind the Baby Boomers have been buying relatively more energy drinks, water, juice, and tea, and relatively less soda than previous generations. What two key variables are affecting demand for Coca-Cola in the U.S., and in which direction are these variables shifting the demand curve for Coke?

Solutions

Expert Solution

coca cola is the world's top selling soft drinks.company started indroducing the product during 19th century,it suddently reached into the customers.almost from 20th century demand and supply increased.eventhough everyone knows about the life threating issue regarding the coca cola consumption,marketing field doesn't consider such ethical values.

what did the demand and supply of coca cola decreased considering the previous century: main reason is in modernised us people are well aware about health.most of the people are prefered with healthy diet,good exercise and mental health.that's why they are prefering more on natural drinks,water,juice and tea ,avoiding cola products. another variable is competetive marketing in us,their are many follow up drinks are available in market ,when price difference occurs between the products demand and supply decrease.   

variables shifts demand curve to the bottom right side of x-axis


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