Product Analysis: “our product is the Milk ONLY”
You shall cover the followings for the company Product’s analysis:
• Pricing policy and profit margin (along with international benchmarking)
• Factors affecting its pricing and profitability
• Demand analysis (use actual or hypothetical data along demand curves)
• Supply analysis (use actual or hypothetical data along supply curves)
• Elasticity (calculate price elasticity of demand, cross price elasticity, and income elasticity)
During the writing please make sure you cover the following topics & questions:
• Marginal analysis & objective functions: Did you discuss the marginal analysis to define objective functions for buyers and/or sellers?
• Determinants of demand: Did you discuss all five determinants of demand?
• Determinants of supply: Did you discuss all five determinants of supply?
• Change in quantity demanded and shift in demand: Did you come up with demand and supply curve? Did you discuss the change in quantity demanded and shift in demand over the last few years?
• Demand and supply curves and equilibrium: Did you come up with market equilibrium through demand and supply? Did you discuss the change in the equilibrium and its causes?
• Surplus and shortage: Did you discuss whether the company face surplus or shortage at particular time? How did the company act to deal with the surplus and shortage?
• Marginal analysis and equilibrium: Did you come up with indifference curve and budget line to identify consumer equilibrium for the product analysis?
• Price elasticity of demand: Did you calculate price elasticity of demand? Did you discuss the meaning/importance of the price elasticity of demand for the company?
• Income elasticity of demand: Did you calculate income elasticity of demand? Did you discuss the importance of the income elasticity of demand for the company?
• Cross price elasticity of demand: Did you calculate cross price elasticity of demand? Did you discuss the meaning/importance of the cross-price elasticity of demand for the company?