MKT120 - Marketing and Business Management Assignment

Assignment Task

Introduction

The market is defined with many terms. It is actually where buyers and sellers meet. The meet because they exchange goods and services in exchange of money. Buyers have unlimited demand of goods and services, the main role of the business is to make sure they meet the buyers expectations and satisfaction. The market runs under demand and supply, this means that without demand and supply the market will not be an actual thing.

Demand

It is defined as the quantity of goods and services that buyers are willing and able to buy. Also known as what customers actually want to buy. The famous philosophy of demand is “the higher the price the lower the quantity demanded”.

During covid 19 essential items like toilet paper where demanded more , it caused the price of the toilet paper to be low. Nonessential items where low demanded which made their prices to get higher

The graph illustrates that the price of toilet pare was at 25 before Covid 19. It shows us that the price decreased from 20 to 10 this will cause the quantity demand to be higher as shown in the graph.

The graph illustrates what happens when there’s a shift in demand of toilet paper, as we can see due to changes in price it makes quantity demanded to be high.

There are factors that cause a shift in demand which are, changes in income of customers, changes of price related to the product, price expectations and changes in population whether in increases or decreases.

The demand of toilet paper was going up in a abnormal rate, while the demand of other product such as sports items where going low in an abnormal way too ( Bagshow & Powel 2020). When firms experience an increase in demand for essential products, they also face a shortage of raw materials during the pandemic (Ivanov, Koonin, Linton &Vikil 2020).

The price of spots items was at 5 and the quantity at 40 before Covid 19 then during Covid the priced increased to 20 and it caused the quantity demand to decrease to 10.

Supply

It is defined as a quantity of goods and services that are supplied products by manufactures which are demanded by the businesses. The philosophy of supply is that the higher the price he higher the quantity supplied or the lower the quantity supplied the lower the price.

During covid 19 essential products like toilet paper their demand was high and their supply. And nonessential items like oil, their demand was low, and the supply was higher.

The graph illustrate how supply works e.g. Toilet paper making factories where selling at 2.5% and the producers will be able to produce 20 million papers per week, if the price increase with 10%. The quantity supplied will increase to 40 million per week.

The graph illustrates what happens when there is a shift in supply of toilet paper. Which shows that when the price increases the quantity supplied will increase to.

Companies had about 2 strategies that hey thought it could implement which is increasing production capacity and enchanting raw materials supply by emerging with other companies (Lucke, Seifert & Bicer 2019)

The are causes of shift in supply curve which are changes in technology & resource, changes in the number of suppliers, price of produced resources which are raw materials, changes in price of related product and expected future prices.

It has become very challenging to continue the pperations supply chains at the operations of some supply chain has stopped because of less demand on certain products(Breen & Hannibal 2020).

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