MicroEconomics Supply and Demand Essay Example | Topics and Well Written Essays - 750 words

Micro economics tack and Demand - Essay ExampleThe worlds leading brands argon accessing the Japanese departmental stores to lead astray their limited edition products. The sales of coffee berrys in the Valentine season pick up like whateverthing. Primary Economic Elements The soaring demand for coffee trees in Japan near the Valentine season presents a positive opportunity for the local anaesthetic anaesthetic and international Chocolatiers. It is non that the Japanese are particularly fond of chocolates. In general, the Japanese are not avid chocolate fans and their panache for the local delicacy Wagashi does tend to have precedence over chocolates. However, the Valentines-Day celebrations are a different thing. The contemporary Japanese youth closely associates the Valentine season with love and romance and the drug addiction of chocolates registers an exceptional spike in the Valentines season. Not only the local Chocolatiers do their best to addition from this surge i n chocolate consumption, but the Chocolatiers hailing from around the world, including Belgium, Switzerland and other European countries do know advantageously that during this time of the year, the price is not a big consideration for the local chocolate lovers. The demand for chocolates in Japan during the two weeks preceding the Valentines-Day augments to the extent that it is getting really difficult for the suppliers to import and manufacture a commensurate stock. Most of the malls and departmental stores do run out of stock just a few days before the Valentines-Day. The sales of chocolate that rest at a conservative monthly mean(a) of 34 billion yearn during the regular season incredulously soar to 55 billion smart during the valentine season. People do not hesitate to buy boxes of chocolates costing as high as 28, 350 yen or $ 340. The Chocolatiers play on the fantasies of the consumers by offering variations like chocolate doll houses and even chocolate furniture costing 10, 000 yen a piece. The foreign and local Chocolatiers leave no stone right-side-up(predicate) to accrue sales from niche segments that have a particular predilection for Kawaii chocolate, exchanged amongst women as a part of a local custom, comprising of a menagerie of chocolate animals like chickens, flying pigs, bugs and bunnies. This trend for chocolate is expected to become stronger in the times to come. The global players in the chocolate business have already taken cognizance of this fact. Graphical Analysis During the regular season, the demand for chocolate in Japan, as any other perishable consumer good is price elastic and follows the classic law of demand. As the Price of chocolate additions from P to P, the demand for chocolate falls from D to D. Besides, people start opting for local substitutes like Wagashi. Price of Chocolate P P D1 D D Units of Chocolate During the Valentine season, the things are different. The increase in the demand for chocolates moves the de mand curve up on the supply curve from D1 to D2. This movement along the supply curve gives way to a new equilibrium price. This not only leads to an increase in the price of chocolates, but also results in a commensurate increase in the demand for chocolates. The Chocolatiers jackpot benefit from this situation by pouring in more supplies in the Japanese markets. Price of Chocola