Case Study Of Frozen Yogurt

I love both, ice cream and doing business. I am very excited about the opportunity I have to open a small ice cream stand on campus! That way I can apply my economic skills. Although the market for ice cream is not as organized as other markets, the group of ice cream buyers, which are students on campus, and the ice cream sellers, in this case me, form a market. I am aware that Ice cream market is very competitive. That means that each buyer knows that there are several sellers from which to choose and each seller is conscious that his product is much alike to that offered by other sellers. It is the month of July and the weather is hot in Miami. “Ice Campusades”, my shop, has been functioning for about a month now. I have supplied the same …show more content…
What happened to the demand for ice cream? Most likely it fell. A lower income meant that my customers had less to spend in total. Another thing that could happened was that the price of frozen yogurt could have possible be higher than $1.50 which was the price per cone, I sold my ice cream for. The law of demand says that you will probably buy more ice cream. Ice cream and frozen yogurt are both yummy and cold! That is the perfect combination for hot weather. Frozen yogurt and ice cream are much the same when it comes to meet desires. A fall in the price of one good reduces de demand for another good. Those two goods are called substitutes. That means that one is used to replace the other. Ice cream and frozen yogurt are a great example of it. I also noticed that on the hottest days I sold more ice cream. That could have happened because the hot weather affects the demand by changing people’s taste for ice cream. That is, the weather changes the amount of ice cream that people want to …show more content…
If they expected to earn more money next month, they might have chosen to save less today and spend more of their today’s income buying ice cream. If customers expect the price of ice cream to fall next month, they may be less willing to buy an ice cream cone at current’s price.
In conclusion, the demand curve shows what happens to the quantity demanded of a good when its price varies. In my case I did not change the price of my ice cream cone. However, when one of the other variables, such as: income, prices of related goods or expectations changed, the demand curve shifted. That explains why the sales fluctuated in Campusades, my fabulous ice cream shop during the month of July. Now, let us imagine that the school allows other students to sell ice cream on school and the number of students on campus remains unchanged. I wonder what will happen to the price of ice cream at campus. To give an answer I will have to look at the other side of the market which is