Essay about Ice Cream And Doing Business

812 Words Mar 17th, 2016 4 Pages
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 amount and variety of ice cream at a marked price of $1.50 each. I noticed that there were days when ice cream remained unsold. However, there were other days where there were not enough ice creams for the numbers of customers. Why did the ice cream sales fluctuate in this manner? To understand it I took a look at the relationship between price and quantity demanded. In class I learned that the quantity demanded of a good is the amount of the good that buyers are willing and able to purchase. The law of demand says: “that other things being equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quantity demanded rises.” Because the market demand curve holds other things constant,…

Related Documents