Four factors that may cause demand
for fast food to increase would include…
1) An
increase of disposable income, so that consumers have more $$ to spend/
2) Increase
in the population. This could be due to more students coming to study abroad.
3) Price
of grocery goods are increased. This will impact the hip pocket nerve of consumers such as students.
4) Consumer
confidence levels are increased. This is may because consumers are willing to purchase goods and services with a high level of confidence to due the current state of the economy.
The equilibrium price has
increased due to the rise in demand.
Decrease In Demand
The two factors that could cause
a decrease in supply over a range of prices include…
1) The
cost for production and supply is more expensive, this could be caused from something such as the fact that suppliers may increase prices on raw materials or current methods of production are not ethically responsible and new changes have to be made. There are many more reasons this could be the case.
2) Decrease
in business confidence, as business will not invest in large sums of products, prices will be forced to increase causing the demand to not be as high.
When there is a decrease in
supply over a range of prices, equilibrium price in the market will be higher.
