StudentShare solutions
Triangle menu

SOFT DRINK - Essay Example

Nobody downloaded yet

Extract of sample

Supply, Demand, and Equilibrium: Supply and demand is the main concept on which whole study of economics is based. The demand is known to be the quantity asked by the consumers or buyers and us usually backed by the ability and willingness to purchase the product. Demand has an inverse relation with the price which means that when the price of soft drink increases, it would eventually decrease the demand of soft drink. On the other hand, Supply means the quantity of the products offered by the industry or market at a certain level of price. Supply has a direct relation with price which shows that whenever the price of soft drink increases the supply will also increase. Equilibrium is a state where the demand and supply are equal. It means that the amount of soft drink being supplied is equal to the amount that is demanded by the buyers (McEachern, 2012). The diagram shows that equilibrium occurs when the demand and supply of the product is equal. This is the most favourable position as this is the most efficient point for an industry to be at. It means that the demand of the product is equally matched with the supply of the product (McEachern, 2012). Soft drinks are included in monopolistic market where the number of firms that operates in the market are many and provides differentiated products to the buyers. These products are not identical but are differentiated and each soft drink in the market is clearly differentiated from others. Entry and exit in this market is easy creating shifts in the market (McEachern, 2012). The possibility of shifts in demand and supply are as follows: Demand Changes in price When the price of soft drinks increases the demand for soft drinks will eventually decrease which means that the buyers will reduce their purchases. On the other hand when the price of the soft drink decreases the demand will rapidly rise. This shows that price has an inverse relation with demand which means that rise in price will lead to fall in demand (Taylor and Weerapana, 2009). Availability of substitute goods Demand is inversely proportional to the availability of substitute goods. This means that increase in substitute goods will decrease the demand of soft drinks. The more substitute products become available in the market the less is the demand for the product (Taylor and Weerapana, 2009). Changes in income The demand for soft drinks can also be affected by changes in the income. As income rises the demand for the soft drinks will ultimately increase and the demand curve will shift to right side. Similarly, when the income decreases the demand for the soft drink will decrease and the curve will shift to left side which shows deficit (Taylor and Weerapana, 2009). Supply Changes in price of goods When the price of soft drinks increases the supply for soft drinks will eventually increase (Taylor and Weerapana, 2009). Changes in price of related goods When the price of related goods increases the supply for soft drinks will eventually increase as there will be more demand for the soft drinks (Taylor and Weerapana, 2009). Changes in price of inputs The price of the inputs or ingredients used to produce soft drinks also causes the supply curve to shift. An increase in price of inputs will ultimately decrease the supply of soft drinks from the suppliers. This will be done to cover up the cost incurred by the suppliers due to increase in the prices of the inputs. Similarly, decrease in the price of inputs w ...Show more


Introduction In this paper the fundamental concepts of demand and supply of soft drinks are defined with the help of diagrams. This paper also includes the shift in the market of soft drinks and the competitors that are available in soft drink market and the reasons for the shift of buyers from one product to another…
Author : evie58
SOFT DRINK essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Technical Assessment: Soft Drink Manufacturing
Technical Assessment: Soft Drink Manufacturing. The basic concepts of soft drink manufacturing are the issues of primary concern for the majority of manufacturers. This fact can be explained by a rapid growth of ‘sensitive products’ development and a desire of manufacturers to provide the most perfect product quality.
9 pages (2250 words) Essay
Marketing Challenges : Developing a new soft drink for teenagers
The best way to deal with this is by producing quality soft drinks to compete with alcoholic drinks. The development of new products is an important component of a market strategy as it acts as a means of securing the future and corporate renewal as explained by Stone and Desmond (2007).
11 pages (2750 words) Essay
In addition, most asthma patients usually complain that the chest feels tight during asthmatic attacks (flare-ups or exacerbations). Asthma attacks may occur infrequently like once or even fewer times a month, or as frequent as a number of times a day (Murphy 5).
4 pages (1000 words) Research Paper
Soft Drink Industry Analysis
So analysis of the situations is quite important in greater functioning of the firm. This is can be supplemented with idea of profitability of the business venture. To understand the functioning of the firm with respect to market trends and analysis, industry analysis is very important and critical.
6 pages (1500 words) Essay
Soft drink companies: web site evaluation
Firms are no longer limited to the 30 or 60 second spots on television or radio, but can now offer a vast array of information to their customer base. They can be informative, promoting, or just for fun. Coca-cola, Pepsi, and Fanta each have web sites that reflect their own individual character and culture.
2 pages (500 words) Essay
Soft Drinks
The drinks under discussion are Pepsi, Coke and Sprite. These are carbonated drinks also known as fizzy drinks that contain huge amount of high fructose corn sugar, which is a replacement of corn syrup or cane sugar and is harmful for health. For people following a diet plan these drinks are also available as Diet Pepsi, Diet Coke and Diet Sprite.
3 pages (750 words) Essay
In my case, I buy soft drinks almost daily with an aim of quenching my thirst and for relaxation. In making my selection for the type of soft drink to buy, I consider various factors that include the price of the soft drink, its mode of packaging, the energy content
1 pages (250 words) Essay
Cola wars continue:Coke and pepsi in 2010
ehind Coca-Cola and Pepsi-Cola; the two soft drinks that have defined out lifestyle with Coke being a product of Coca-Cola while Pepsi-Cola is a product of Pepsi. Coca Cola is the older of the two Colas. In 1886, Dr. John Pemberton produced Coca Cola in his lab while he was in
2 pages (500 words) Essay
Competitive position and performance of Soft Drinks Industry 03082
The study has demonstrated the effect of external environmental factors on the performance of organisations in the UK soft drink market. The analysis of competitive environment has evaluated the effects of competitors and new business ventures within the market.
24 pages (6000 words) Essay
The Soft-Beverage Industry
According to the report the sweetener in soft drinks varies from fruit juice, sugar, and high-fructose or sugar substitutes.  In other instances, the soft drinks contain caffeine and other preservatives to make them stay long before going bad. The manufacturing of soft drinks originated from the development of fruit-flavored drinks.
9 pages (2250 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment