Only one thing can cause movement along a product\'s demand curve - that is, cau
ID: 1164010 • Letter: O
Question
Only one thing can cause movement along a product's demand curve - that is, cause a change in quantity demanded for that product and that's a change in that product's price. On the other hand, there are five key variables that can cause a product's demand curve to shift to the left or right - that is, lead to a change in demand. Coca-Cola is experiencing shifts in the U.S. demand curve for its famous cola soft drink, as the huge post-World War II "Baby Boom" generation has aged beyond their prime soft drink consumption years, and as the smaller generations behind the Baby Boomers have been buying relatively more energy drinks, water, juice, and tea, and relatively less soda than previous generations. What two key variables are affecting demand for Coca-Cola in the U.S., and in which direction are these variables shifting the demand curve for Coke?Explanation / Answer
Ans
The two variable according to above quoted text are changes in age structure of population and changes in taste. Changes in age structure affect it because old people consume less number of soft drinks and usa population is aging.This shifts demand curve leftwards. Also new young population has quite different tastes than earlier generation. They are more health conscious and thus spend more on energy drinks, water, tea etc. This again shifts demand leftwards since less is demanded now at same price. 100% right answer. Please please like answer
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