L L Bean Swot Essay

L L Bean Swot Essay

… The economic principal of supply and demand explains an important economic concept. Supply refers to the degree of availability of goods or services, and demand refers to customer need to purchase those goods or services.
An example of problems with supply occurred in 1997 with the coffee bean. At the time, Coffee houses such as Starbucks had become very popular, and consumers had developed a taste for fine coffee beverages.
The most desirable coffee beans were grown in Central America. Central America had suffered a drought, and the coffee bean harvest was considerably lower than could meet the needed supply (Butters, 1997). Coffee shops were low on supplies of coffee beans and often had to pay markedly raised prices for what beans they could get.
The United States high-energy consumption can illustrate the principle of demand. The price of electricity is governed by how great the demand for it is, so in some municipalities, consumers pay more per unit for the electricity they use at peak times than they do in low-use times (Sowell, 2001). Because of this, users will pay more per unit for electricity they use on a summer afternoon, when air conditioning is being used …

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