Subway Sandwich Firm) Consider Subway Produces. What

Subway sandwich firm) Consider subway produces. What things change demand product? What things affect supply? How quantity demanded changed? What government raised minimum wage. How policy effect firm? SLP Assignment Expectations: Use concepts modular background readings good quality resources find cyber library internet search engines.

Consider what Subway produces. What are some things that would change the demand for your product?

A downturn in the economy might cause consumers to begin to 'brown bag' their lunches rather than to purchase lunch at Subway. However, consumers who used to patronize more 'high end' sandwich shops and restaurants might shift their preference to the less expensive Subway chain. Concerns about the health of fast food might cause consumers to be more apt to patronize Subway, given that Subway offers healthier options than many other chains and specifically promotes the health of its products as part of its marketing strategy. On the other hand, some consumers might eschew consuming fast food at all, in an attempt to eat more healthfully. A health scare about the safety of lunchmeat could also cause a sharp drop in demand. An increase in the demand for competitors' products, such as a sudden upsurge in interest in eating Wendy's might cause demand for Subway to drop. Likewise, negative publicity about McDonald's might cause patronage of Subways to increase.

What are some things that would affect changes in supply?

Recalls of meats and vegetables would cause a reduction in the supply of input goods, as might an unfavorable season for one of the foods used in the preparation of Subway items, such as wheat, tomatoes, or lettuce. Changes in the supply chain that resulted in a decrease in some of the input goods of Subway's most popular items, such as meat, might force the chain to reconfigure its menu, resulting in a drop in demand. Strikes by transit workers, national disasters that affect transportation of input goods and other problems with the supply chain could also reduce supplies. An increase in the subsidies for certain crops could increase the supply of goods like wheat or corn, causing a greater incentive for farmers to produce these items.

How can quantity demanded be changed?

When Subway offers discounts to its loyal, core customers, customers may be more apt to buy several sandwiches at the same time: getting a sandwich for dinner as well as for lunch; using Subway to cater their Superbowl party rather than just buying lunchmeat and eating Subway as a solo meal; or eating Subway as a family on a more regular basis. Quantity demanded is different than a general rise or dip in demand because it refers not to demand for the product, but specifically to the amount demanded of the product. Even if no new consumers are added, new promotions (such as a two-for-one deal) often increase or decrease the quantity in demand; likewise the firm's need to raise prices may cause a decrease in demand, as loyal customers order less.