)��H�KuC�ƌ�%]�*�N�Kݔ3�S���T�� SeA܎��� Vg7X�SH�1�b7�γN!�=�BB�w��Q1��Z|!E�ͩ�3��YI.U�����RV����W߳}N*jY��q�YѥeŻ���+����NJ.G��*���Y��`��1'O��cNP� H�\��nGE���Y&N���m��y�J�ﮮ�P���>U��֝���Ǭ?>��|>ާ������}j�s������6{=�W���Q��_^����u�����N��v����S��v�}�~��x��_>]N�����T���ܪݎ��~U��g _ޯ��d��4{��>�����M�o���Ib8z��v�j�|~��a���CkO+;���!�!�l�`K����!x$x��`G��=�~A�L����!P�JP��lA�*d�!�����B� In 1994, the film The Hudsucker Proxy portrays a fictionalized account of the demand for Hula Hoops as they were introduced into the market. 0000004242 00000 n 6. Today, Brainchild Products, the producers of Silly Bandz are experiencing a large increase in demand for their products similar to that of Hula Hoops in 1958. The rise in demand for Silly Bandz; however, has not been accompanied by an increase in the price for the product. From the information presented in the video clip from the. If the price of a product is too low, demand will exceed supply and there will be a shortage of goods or services. 809 15 The video clip the Hudsucker Prox provides an example of how prices are changed in response to demand. |lP�sms���㢗y��X�ܱ�Y3�n��`G�/=H��2�Up�p�J�/�l�n���q��x�7^z�%�����K|���|����=H��7|$�S� |*d�!�����B� startxref The demand for a product X might be connected to the demand for a related product Y – giving rise to the idea of a derived demand. hڂ�h�L�2�9h3}�����8 ρ_y�@^b����yY�iT��AAE6������ %�_6���2le� Similarly today, Silly Bandz has taken off in sales since the summer of 2008. Demand and Supply Case Study: Demand and supply is the objective economic law which defines the interdependence between the indicators of supply and demand of the products on the market and their price. �B http://abcnews.go.com/Nightline/video/silly-bandz-latest-fad-11686769http://abcnews.go.com/Nightline/video/silly-bandz-latest-fad-11686769, www.usatoday.com/money/smallbusiness/2010-07-01-sillybandz01_CV_N.htm. 809 0 obj <> endobj This generally happens because the price of the product is above the market equilibrium price. 0000001389 00000 n �)� �y 5. registered in England (Company No 02017289) with its registered office at 26 Red Lion Using their knowledge of the Law of Supply and Demand, and the Hula Hoops Case Study, ask students to view the YouTube video, … Today, we have seen a similar rise in demand for Silly Bandz; however the price level for Silly Bandz has not risen. Students are walked through three different supply and demand schedules and shown graphically how the demand line for Hula Hoops changed from the introduction of the Hula Hoops into the marketplace to the height of their popularity in 1958. In order to gain some background information about the demand for Silly Bandz, take a look at the following news stories from ABC and USA Today. |*d�!�����B� A shortage is the situation that results when the quantity demanded for a product exceeds the quantity supplied. If not, what might the price due in the future given a continued increase in demand? If the price of a product is too high, supply will exceed the demand and there will be a surplus of goods or services. h 5. You are walked through three different supply and demand schedules and shown graphically how the demand curve for Hula Hoops changed from the introduction of the Hula Hoops into the marketplace to the height of their popularity in 1958. So long we have examined how markets work when the only factor that influences demand and supply is the price of the commodity under consideration. The concept of supply and demand is often considered the heart and soul of economics. According to Robert J. Croak, founder of Brainchild Product the producer of Silly Bandz, from a small warehouse in Toledo, Ohio has gone from shipping 20 to 1,500 boxes a day. The Law of Demand states as the price of a good or service that consumers are willing and able to buy during a certain time period rises (or falls), the quantity of that good or service demanded falls (or rises). It is the foundation for much of what is studied in the field, and understanding how supply and demand affect the economy can help us to recognize economics everywhere in our daily lives. xref The Law of Supply states that as the price of a good or service that producers are willing and able to offer for sale during a certain time period rises (or falls), the quantity of that good or service supplied rises (or falls). Created: Aug 11, 2016| Updated: Feb 22, 2018, Demand and Supply and calculation questions from case study from a newspaper article. 0000003018 00000 n This website and its content is subject to our Terms and Use the following link (Silly Bandz Case Study), The case studies for Hula Hoops and Silly Bandz exemplify how changes in demand for consumer products can shift tremendously over short periods. Supply - http://www.econedlink.org/interactives/index.php?iid=221&type=student, 2. Review the concepts of the "Law of Supply" and the "Law of Demand.". �0ȴZ|I�S��@�Tb�P��[�F��ˢX�� ifV��bX4�4;�Q\4��%��= n0 �Ľ 0000001859 00000 n You are walked through three different supply and demand schedules and shown graphically how the demand curve for Hula Hoops changed from the introduction of the Hula Hoops into the marketplace to the height of their popularity in 1958. http://abcnews.go.com/Nightline/video/silly-bandz-latest-fad-11686769, 7.