If it is ask about one single field that has recognition with almost every walk of life, then the name of Economics will be reflecting on the screen. After Adam Smith and Alfred Marshall, who directed the most important definition of the term economics, there are numerous authors who found a clear relationship among the economic based functions, and its core impact over the economic consequences of an economy (Banerjee and Duflo, p.45).
Earning and consuming the money in a best possible manner and with a sigh of effectiveness is the most important aspect of economics, in fact the main definition of economics influence on the same concept accordingly. However, the definition that specifically relates to economics has been distributed into two broad types and functions which are microeconomics and macroeconomics. By definition, microeconomics is the type of economics that specifically deals with the branch of economics that deal with the economics of the individuals, while economic consequences that has a direct linkage with the economy of the whole economy is known as macroeconomics. Both of these types are essential for the sake of an economy, as both of the functions bring something new for the economies, policy makers and think tanks of the economy (Feldstein, p.89).
There are number of functions that specifically stride under the field of Economics and among those functions there is a name of Demand and Supply (D&S) as well. It is one of those concepts that lie in almost every type of economics; however the method, quantity and economies of scale will be different in each of the scenario. In this assignment, which is purely made on the basis of demand and supply, the application and implementation is required with different scenarios. The assignment requires moving on to the four dominating questions, after describing the current scenario of Coffee described in the case.
Discussion & Analysis
The function of demand and supply are more than essential for the sake of economic function, and it is an important element that found significant in this particular case. The same case has been defined in this particular case as well that relates specifically to Coffee of Washington. The core case is related to utilization of Coffee in Washington including its core varieties particularly. (Hazlitt,p.67).
According to the National Coffee Association, about 83 percent of American adults drink coffee one form or another. Therefore, including everything from a cup of tea to brew, caffeine, high test, JAVA, Joe, jamoch, brains, mud. About 83 percent of adults drink coffee, in the United States, the world's largest beverage consumption, from 78% a year earlier, in 2013 the survey according to the National Coffee Association.
Niuyue Ji Group, said in a statement today, 63 percent of adults drink coffee every day, 65% of the same period last year, and compared to 58% in 2011, the data from the 2840 online survey respondents, from a In mid-January to mid-February to compile.
Consumption was up 5% from last year, which is 5% in the US, is the world's largest coffee market, and to provide $ 30 billion industry. They also reported that 18.12 percent of coffee drinkers in the United States, drinking delicious coffee beverages daily (NCA). In addition to 54% who drank coffee daily, 25 percent of Americans drink coffee occasionally (NCA).
. There are other states of the United States (US) as well, wherein the growth of fruits and Coffees are perfect like Arizona, California and Ohio, but the Coffees of Washington have a greater taste, have more juice and Vitamins as compared to the Coffee of other states. This is the main thing why the demands of Coffees of Washington are high. It is not only high in proportion in the state, but also high in international markets as well (Kindersley, p.12).
The function of demand and supply can be applied over the case of Coffee of Washington as well. Supply and Demand is one of the most important and fundamental concepts lies in the field of economics, in fact it is known as the backbone of the market economy. Demand function is the that function that denotes the quantity that much be launched by a company to fulfill the appetite and requirement of the buyers, while supply on the other hand is the actual number of quantity that has been supplied by the companies in the economic place on the behalf of the demand particularly. The organizations that have highly compatible and competitive essence of analyzing the demand of their products are comparatively more productive and effective as compared to organizations which do not have effective research and development (R&D) stance particularly. Every organization of the world is now addressing the same thing particularly to analyze the stance of the companies accordingly. When the demand function would have been in a perfect function, then the stance of getting the right things at the right time is also effective. The same feature can be applied over the scenario of Coffee as well in Washington. There are certain determinants of demand that specifically influence over the productivity of these organizations comprehensively. The same determinants of demand are found in this mentioned case as well, in which the Coffee of Washington is selling in different parts of the world internationally as well as domestically as well. One of the major factors of determinants are storing capability of the states to store the Coffees accordingly, and then it would be selling in different parts of the world, and even in the domestic markets as well. There are four different determinants that will be discussed in this particular analysis, along with one determinant of supplies.
- If there is damage to other citrus crops (frost, etc.), then the demand for Coffees will increase
According to this particular question, the crop of Tea, Frost is damaged due to heavy rains or other natural disasters. As per the question, this particular incident increases the demand of Coffee in the region. Mentioned below is giving a clear picture of this scenario
- If other countries improve the quality of their Coffees, then demand will decrease
Usually a company or an economy will be assaulted by many international and domestic players, and they are required to analyze and overcome on this issue completely, otherwise it will be very difficult for them to stay in the business for a specific time period (Wessels, p.90). In this scenario, the same problem has been related with the scenario of the Coffee of Washington as well, as there are other countries as well, which are very much active in exporting their items in the United States (US), and among those countries the name of Australia and New Zealand are very well known. The scenario is applied on this aspect as well. Let say, Australia and New Zealand has now improve their quality, and it increases its exports in the region of the United States (US) particularly, which will decrease the demand of the Coffee of Washington consequently, and the diagram below is showing the same
It can be clearly seen that the demand of Coffee of Washington has decreased due to the increment in the quality of the products of Australia and New Zealand that decreased the selling price of the product resultantly. From the aforementioned diagram, the lines of new and old demands can be analyzed accordingly with the help of demand and supply rule. It means that the product of Coffee of Washington is in high competition with the other products operating in the same line of business.
- If relations with Mexico can be improved and their economy is stable, then demand should increase
Political and economic stability are some of the major aspects that associated with an organization as well as for an economy particularly (Wheelan, p.12). From the case study of Coffee of Washington, it is found that the political relation is not effective with some of the countries of the world, and the name of Mexico is one of them. From the case, it is found that Mexico is one of those countries that are not effective in terms of improving the economy. If the political relationship of Mexico and the United States (US) would become effective, then it will have a definite impact over the stance of demand as well. This particular aspect has been defined in the below mentioned diagram
Old demand in the graph is denominating the demand of Coffee in the region before the political and economic stability of United States and Mexico. When the political stability is effective with Mexico, then it will increase the level of new demand particularly. This will also increase the pricing in particular as well. Through this aspect, Washington can sell their Coffee in Mexico as well accordingly.
- As U.S. income increases, the demand for Washington Coffees will increase. Declines at higher incomes can be offset through better consumer education at these levels
Income has a direct impact over the demand and supply function in particular. The demand of Coffee of Washington will deliver on different aspects. The income has different aspects in particular. If the level of income is high, then it will also increase the level of consumption in particular. On the other hand, it will be different if the income level is different in particular. This particular scenario is also delivering that there is a serious relationship among the income level and the incremental demand of the Coffee in the region of Washington in particular. This particular aspect can be found from the below mentioned picture in particular
- Reductions in the price of citrus fruits should not have a great impact on purchases of Washington Coffees. Coffees have been gaining market share
According to the case, alternative products are very important, and this particular aspect has been defined in this case as well completely. From the case, it is found that Coffees of Washington are of high demands in all over the world and especially in the domestic markets in particular. Coffees are highly effective, and the demand of Coffee is increasing in this particular section as well. In this scenario, it is defined that the reduction in price would have a great impact on the purchases of Washington Coffees, and resultantly, the market share of the Coffees would be high and effective. The main reason behind this aspect is that Coffees demands are highly effective as compared to citrus fruits in particular. Any price reduction would not bring any sort of change and ineffectiveness in the purchasing of Coffees in the Washington region. The major reason behind the same aspect is that the price elasticity of demand is inelastic; hence no effect will be done on the level of alternatives in particular with effectiveness in particular.
Economic function and economic consequences are some of the important aspects from the viewpoint of an economy, and it is very significant accordingly. Economics is that field which has its recognition in almost every walk of life, and it is known as demand of money and effectiveness. Earning and consuming the money is the core definition of economics, and it is solely divided into two different aspects which are microeconomics and macroeconomics.
Both of these types of economics are well defined and effective, and the economic functions are essential for different aspects particularly. Substitutes are important and demand and supply things are essential in particular. The main theme of this paper is to analyze the demand and supply aspect in particular. There is a case attached with this particular analysis that associated with Coffee of Washington. From this particular analysis, it is evaluated the demand and supply aspects are effective, and there are four different sections have been introduced in it, which have been defined in the analysis and finding section of the report. It is found that income has a direct impact over the quantity demanded in particular.
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