Supply and Demand of Pepsico

Week 03 Course Paper Supply and command If the expenditure for PepsiCo brands increase so does the grant. This is because as the price increases, PepsiCo has an incentive to supply more to meet the demand. This creates a positive supply curve. If PepsiCo competitors can get out their products for less and sell them for less money, than consumers entrust start to purchase competitor products as substitutions (Case, Fair, &038 Oster, 2009).The demand for PepsiCo brands is the price in which consumers are testamenting to deprave at a given price. If the price of Pepsi products stay low and on the whole other things are unchanged then the demand will tarry the same or rise. If the price of Pepsi products goes up then demand will go down. PepsiCo is a consumer product ships company that operates in highly hawkish markets and to continue demand for their products they mustiness continue to improve products to offer what the consumer wants.PepsiCo must monitor the market and r espond to changes in consumer wants quickly or their competitors will respond first taking away some of the demand for PepsiCos products. PepsiCo has several brands that it produces including Pepsi-Cola, Frito-Lay, Tropicana, Quaker, and Gatorade. These brands offer quick snacks and convenience, which has historically been a preference for consumers. PepsiCo is innovating slipway to keep foods and snacks convenient while making them healthier.This is in response to consumers scatty healthier options. All of these actions coupled with marketing strategies keep the consumer demand boost for PepsiCo brands (PepsiCo, 2011). There are several substitute products for PepsiCo brands. Such substitutions as carbon for Pepsi, Tropicana Orange juice for Sunkist orange juice, or Gatorade for PowerAde are made when their price is lower than PepsiCo brands.Complementary goods for PepsiCo brands would be Quaker oatmeal and Toast, Mug tooth root beer and vanilla ice cream, and Aunt Jemima panc akes and Butter. These products are consumed together however, the same company does not necessarily produce them (PepsiCo, 2011). ? References Case, K. , Fair, R. , &038 Oster, S. (2009). Principles of Microeconomics (9th ed. ). Upper Saddle River, New jersey Pearson Education, Inc. (Original work published 2002) PepsiCo. (2011). Retrieved January 16, 2012, from http//www. pepsico. com/Index. html