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Essay / Research Paper Abstract
A 5 page paper that critically assesses the argument that for some goods, the economics demand curve may exhibit a positive slope. Presented is an example using the current cola war between Coca Cola and Pepsi Cola and a shift in demand curve slope that could possibly occur were the equilibrium of this market disturbed. Also briefly discussed is the origin of this marketing assessment standard as introduced in Alfred Marshall's 1890 publication of Principles of Economics. Bibliography lists 3 sources.
Page Count:
5 pages (~225 words per page)
File: D0_LCcurve.doc
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Unformatted sample text from the term paper:
parched consumers as they enter the store. Throughout the summer, this stackable island shifts in appearance and brand as major producers compete for the spotlight and vie for attention
through a series of well-planned marketing strategies and sales promotions. They are the colas, and the war between competing brands heats up every summer along with the temperature. The
cola war between Coca Cola and Pepsi Cola is one that has raged for years, and one that has, at times, caused shifts in the cola market to occur periodically
due to a number of variables that affect the overall market in general and individual brands in particular. Each leading brand, however, has retained a number of loyal consumers,
and each leading brand continuously strives to not only hold on to its share of the market but to also lure consumers of the competing brand into its respective corner.
This is conventionally accomplished by keeping a keen eye on marketing trends and attempting to influence those trends through promotion and strategy. Imagine for a moment, however, that at
the height of summer Coca Cola suddenly, for whatever reasons, raises its prices above the normally competitive level while Pepsi Cola remains stable at the lower cost. Automatically, the
consumer demand for Pepsi Cola would rise due to what is called in the economic sector the "substitution effect" (Dyer, 2000; http://www.iag.net/~dadyer/chapter_4.htm). In this scenario, what would have just occurred
would be a positive slope on the demand curve for Pepsi-Cola, a curve that normally incorporates a negative slope due to the traditional law of demand. II. The Demand
Curve Defined According to economic theory, a demand curve has been defined as "a graph of a table of information detailing the quantity demand at various prices" (Dyer, 2000; http://www.
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