Need an research paper on the demand and supply effect of lays chips on the market of the product. Needs to be 6 pages. Please no plagiarism. For the purpose of this study, we have used a product as a guinea pig. In order to understand the impact of the product in its related market and the impact of the market on the product, we have carried out further analysis using the established theories of economics about the future viability of the product. Here for the sake of this analysis, we have used the potato chips product manufactured by the Coca Cola Company called LAYS. (Lipsey and Chrystal, 2002)
The price elasticity of demand is defined as the magnitude of the proportionate change in demand and the proportionate change in price of the product. Therefore, elasticity is the measure of responsiveness.
Price elasticity of demand is a very important concept that is related to the pricing decisions of a product. If an organization wants to generate the maximum amount of revenue from its products and it is unable to determine how much increase in the price can be made by them so that the overall demand of the product does not reduce. This decision is taken on the basis of the analysis of price elasticity of demand. The price elasticity of demand can be described as the rate of response of quantity demanded due to a price change. This means that if a unit change in the price of the product is made then the quantity demanded will also change up to the extent to which the demand of the product is dependent on the price of the product. In this case, Lays is a product which is highly appreciated the product of a very reputable company in the world and has a very large market all over the world. Through the detailed analysis of the product’s features and the price elasticity of demand on this particular product, it has come to the attention that since the product is being sold in the perfectly competitive market, any decisions regarding the product or its feature can affect its current market.
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