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Essay / Research Paper Abstract
This 8 page paper considers how an increase in the supply of a product will impact on companies in that market. The supply of doughnuts has increased with companies such as Krispy Kreme and Dunkin' Donuts. This paper shows how the increase impacted on Krispy Kreme and how they have responded, seeking to reduce costs due to the fall in profits as well stimulate demand. The bibliography cites 6 sources.
Page Count:
8 pages (~225 words per page)
File: TS14_TEkrispsupdem.rtf
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Unformatted sample text from the term paper:
in the days since the company started there has been an increase in competition and an overall increase in the supply of doughnuts, both as fresh form shops where coffee
is also sold and in packages from supermarkets. Over time there has been an increase in supply, but this has also been matched by an increase in demand. The company
has been expanding rapidly, in the lat few years, since being launched on the stock market in 2000, with more than 150 new stores since that date. In many cases
these are new markets, where there was limited competition, but the increase in supply has to have an impact on the way that Krispy Kreme undertake operations and market their
goods. To understand this we have to look at the supply and demand model. Where there is a demand that exceeds supply the price of the goods will increase
until there the price puts a sufficient number of people off, and the purchase is made with supply and demand being in equilibrium. When the converse is true and the
supply exceeds the demand, the price will then drop, dropping to a level where it is able to attract sufficient customers to make the purchase attractive and create delirium between
supply of the goods and demand of the goods (Nellis and Parker, 2000). This is traditionally illustrated by the use of a chart, as shown below.
The point at which the supply lines cross with be the point of equilibrium, which is the
price. The supply line may be moved when there is a change in the supply, if there is a decrease in the supply the line will move to the left,
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