Market Analysis Questions

The harvest of peppers has declined over the last few years because of weather conditions. As a result, Hoy Fung Foods, the maker of Sriracha Sauce cannot make enough of its product to fill the orders that are coming in. Sriracha has become more expensive. Ramen shops around the country are concerned– Sriracha is a key ingredient in ramen recipes

What will happen in the market for ramen soup?

• The demand will increase.

• The demand will decrease.

• The supply will increase.

• The supply will decrease.

Target sold huge amounts of home electronics from 2020-2021 but in 2022 those sales are declining. People are not buying home electronics like they were and this means Targets are filled with unwanted items. Target puts all home electronics on sale for 50% off. 

What will happen in the home electronics market when the items are put on sale?

• Demand will increase

• Demand will decrease

• No shift, change in price

• Supply decreases

The price of ground beef has skyrocketed; the average price hit a record high of $4.86 per pound. Hamburger buns and ground beef are complementary goods.

What will happen in the hamburger bun market?

• Increase in demand

• Decrease in demand

• Increase in supply

• Introduction of new competitors

A new kiln has been invented to produce ceramic coffee mugs. The kiln allows more coffee mugs to be produced and fewer broken mugs in the process. Because of this technology, the cost of producing mugs has declined and the productivity of ceramic mug makers has increased.

What will happen to the supply of ceramic coffee mugs?

• The supply will increase.

• The supply will decrease.

• The supply will remain the same.

• The supply will fluctuate.

Communities across the country have seen a rise in severe weather. Many communities this summer experienced significant flooding and are in need of sandbags to protect structures from water damage. As more communities look to purchase these sandbags, community leaders predict that the price will quickly increase. 

What will happen in the market for sandbags today based on consumer expectations?

• The demand for sandbags will increase.

• The demand for sandbags will decrease.

• The supply of sandbags will increase.

• The supply of sandbags will decrease.

The birth rate in the United States has steadily decreased over the past 50 years declining from 3.148 births per person capable of pregnancy in 1950 to 1.782 in 2022. This declining birth rate has led many diaper firms to go out of business. 

What has happened in the market for diapers? (Select all that apply)

• The demand for diapers has increased.

• The demand for diapers has decreased.

• The supply of diapers has decreased

• The supply of diapers has increased

A country’s economy has been struggling, and many of the citizens fear they will be laid off from their current job, will need to take a pay cut, or will be unable to find work. Apple’s iPhone is a normal good.

What will happen to the market for iPhones today?

• The market will see an increase in demand.

• The market will see a decrease in demand.

• The market will remain stable.

• The market will experience a shortage.

Disney+ is losing customers to Hulu because Hulu offers lower-cost options. After weighing the costs and benefits (by reviewing their total costs, total revenues, and accounting for their opportunity cost) Disney+ executives are unsure that they can lower prices. They are concerned that if they lower prices they will not be able to make a profit.

What will happen in the market for streaming services?

• Increase in supply

• Decrease in supply

• Increase in demand

• Decrease in demand

Which of the following is illustrated?

• an increase in quantity demanded

• a decrease in quantity demanded

• an increase in demand

• a decrease in demand

Which of the following would cause the change illustrated in the graph?

• an increase in price

• a decrease in price

• an increase in consumer income

• a decrease in consumer income