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Essay / Research Paper Abstract
This 3 page paper looks at the concept of supply and demand as it applies to the Coca-Cola Company. Answering questions set by the student the paper discusses equilibrium level of supply and demand, what would happen if government out price constraints on the company, what has impacted on the quantity demanded and how the firm has adjusted supply. The bibliography cites 2 sources.
Page Count:
3 pages (~225 words per page)
File: TS14_TEsupcoke.rtf
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Unformatted sample text from the term paper:
company. For a company such as Coca-Cola which has in excess of 2,800 beverage products sold across more than 200 countries including the words four of the worlds top five
non alcoholic drinks it is important to understand this relationship in order to manage the demand and judge the level of required supply to sustain prices. Question 1 When looking
at Coca-Cola there is currently a point of equilibrium that is continually shifting slightly. The demand globally is assessed to be 1.5 billion servings1 a day (Coca-Cola, 2007). The prices
will also vary according to the product that is sold and the size, so there is variation, but looking at the overall approach the price does fluctuate in different countries
but remains at the premium end of the carbonated and soft drinks market and remains fairly static, there are special offers, such as the coke zone promotion where points can
be collected and then exchanged for gifts. When demand slips it is more likely that the firm will stimulate demand with marketing and offers rather than cut prices. Question
2 The supply and demand equation shows that where there is an increase in price there will usually be a decrease in demand, this may be with less bought, or
in the case of a product where there are numerous competitors and substitutes a shift to a different product, so less of that particular companys product is bought (Nellis and
Parker, 2000). The opposite is also true, where there are price constraints and a firm is forced to reduce prices then there is likely to be an increase in demand.
However, if there is a government price constraint it is likely to impact on the entire industry rather than just one form, so as the price of Coca-Cola decrease, other
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