Page 550 - Business Principles and Management

Chapter

Nature and Scope of Marketing 20

20.1 Nature of Marketing

20.2 Elements of Marketing

20.3 Marketing Plan

RE ALITY CHECK

The Supply-vs.-Demand Dilemma

ony Taylor looked back on the previous week with amazement. He
remembered that on Monday he sat through his economics class learning
Tabout the concept of supply and demand. As he listened, he thought,
“This doesn’t apply to me. At most, it might affect some very large busi-
nesses. I wonder why we’re studying it.” But what a week!
He and three friends had wanted to see a certain movie for several weeks
but could not find a time when they could all go together. Finally, everyone
was available after school on Tuesday to catch the 4:00 matinee. Tony
rushed out of school and down to the bank to withdraw some money for the
movie and snacks. When he entered the bank, he encountered a long line of
customers waiting for the bank tellers. A computer problem had shut down
all the ATMs, so everyone had to do their banking in person.
By the time Tony got his cash, he was already late for the movie. As he
dashed up to the theater, he saw his friends standing outside. Attendance for
the movie they wanted to see had recently fallen off, so the theater was no
longer showing that movie.
Then, on Wednesday, Tony heard that his favorite music group would
be performing locally and tickets would go on sale this weekend. Promoters
announced that due to the expected high demand for tickets, a $15 surcharge
was being added to the price of each ticket. Tony thought the tickets were
already expensive and didn’t see why he should have to pay more when
several other, less popular groups had played with no surcharge added.
But today had been the most frustrating day. Tony’s parents owned a
small landscaping business, and Tony always helped them find high school
students to work during the summer. He had never had problems getting
enough applicants for the available jobs. However, few people he talked
with today were interested. They told him that because the unemployment
rate was so low, many jobs were available that paid more and were not
as hard work as landscaping. Now Tony thought back through his week’s
experiences and remembered Monday’s economics discussion. “Maybe
supply and demand affect my life more than I realize,” he reflected.

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