In the field of economics, various factors typically shift the demand curve for certain goods and services. They cause a different quantity to be necessitated at any given price. When selling ice cream to students on campus, certain factors can lead to a demand shift, resulting in a fluctuation in sales. These factors include the tastes and preferences of the customers, the prevailing climatic conditions, and students’ income. When the school allows another student to sell ice cream, competition exists in the business, and the prices of ice cream may tend to lower to cope with the competitive market. Therefore, the demand shift for ice cream will be determined not by the rise in price but by variations in other demand determinants.
Their tastes and preferences may determine the demand for ice cream by the campus students. When the students have a more excellent taste and preference towards the ice creams, the demand increases and leads to high levels of the demand curve. In this case, they purchase all the ice-creams. Contrary, if the students have lower tastes and preferences towards the ice creams, they won’t purchase many ice creams remaining (Satheesh 185). Usually, people’s preferences for various goods change over time due to fashion changes, which affects the demand.
Besides, the prevailing natural climatic conditions may affect the demand for ice creams. Mostly, ice creams are preferred in hot weather conditions meant to provide a good breeze in one’s body. During cold conditions, people prefer eating warm foods compared to hot conditions when they take cold beverages. Students will make low purchases during the cold days and many purchases during the hot days. In this regard, the natural climatic conditions will determine consumers’ demand for ice creams.
Also, the student’s income is another factor that causes the shift in the levels of demand. The higher the number of funds in the students’ accounts, the higher the demand for ice creams. Students with fewer incomes demand fewer ice creams and as a result, the demand shifts downwards. This aspect has been observed during the current COVID-19 crisis. Many businesses have experienced difficulties due to the lower purchasing power of their customers. The demand for products has declined as a result of lower incomes or even unemployment. Therefore, the greater the students’ incomes, the higher the purchasing power of ice creams, and as a result, demand for the ice creams increases.
Conversely, the prices of ice creams on the campus are expected to fall when the school allows for competition. From the knowledge of economics, to survive in a competitive market, a business ought to lower its prices slightly to maintain its customers and attract other new customers. Since there is another seller of ice creams on the campus, I will lower the price of ice creams and improve on various areas such as packing and the quality to avoid giving my customers an option to buy the ice cream from the other seller. Thus, the competition among sellers in a market deals with the seller with the best products to attract customers.
In conclusion, various factors influence the shift in demand for a given product in the market. As a business person, one should consider these factors that will help determine the state of a business. Income, natural weather conditions, tastes, and preferences in this instance will determine the demand for the ice creams consumed by the campus students. It is essential to be aware of the business competition. Overcoming competition in an industry can be practiced by lowering the prices of products and improving the quality of products. These measures will lead to a better state of a business despite the prevailing competition.
Reference
Satheesh, Vaishnavi. “Ice Creams: A Silent Addiction.”Acta Scientific Nutritional Health, vol 3, no. 9, 2019, pp. 180-180. Acta Scientific Publications Pvt. Ltd. Web.