discussion board Discussion Board Ike\'s Tropical Foods specializes in the whole

Question

discussion board Discussion Board Ike's Tropical Foods specializes in the wholesale distribution of goods, such as rice, and beans. The firm's manager is concerned about an article he read in this morning's Wall Street Journal indicating that the incomes of individuals in the lowest income bracket are expected to increase by 10% over the next year. While the manager is happy to see this group of individuals does well, he is concerned about the impact it will have on his sales. What do you think is likely to happen to the price of products sold by Ike's Tropical Foods? Explain Initial post on the start day of the class - Every week - you must have a post on 3 different days during the week. Your new discussion topic

Explanation / Answer

An expectation of increase in income of lower end group would increase the demand for Tropical Food, as the tropical foods are normal good therefore the DD curve will shift to right and price will increase.

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