This is seen through the diagram, the increase in demand for ice cream causes a shift across the supply curve, from D1 to D2.If the price had remained at P a shortage of the product would occur.In order to eliminate the shortage of equilibrum quantity has also increased from Q1 to Q2.There has been an increase in quantity supply.The profit of the ice cream will increase It also predicted that the dairy products are increasing from 5 to 6 percent.
The diagram show that a decrease in supply from S to S1.If the price had remained at P a shortage of supply would occur.To eliminate the shortage equilibrum quntitiy has also decrease from Q-Q1 there has been a decrease in quantity demand.A change in price causes a movement along the demand curve whereas a change in any other factor that influences demand will cause a shift of the whole curve.
The price of the ice cream per cone will increase from 2$ to 3$ expect the Trucks in tourist areas.Hamburger patties will also increased from 7 to 8% compared to last year and this year has the highest increase of 2.9%.The price of any products that includes beef will increase.The price pressure of beef may also lead to more popular substitutes like chicken or turkey.
Hot dogs one of the most eaten food in USA is going to rise from 6.5 to 7.5% this year which is 2nd highest price increase behind beef.Because of the increase of beef have also affect the price of the pork.Fruit and vegetables such as summer watermelon and grilled bell pepers are expected to show price increase from 3.5 to 4.5 percent%.Vegetables price will increase much more than vegetables from Broccoli,spinach from 4.5 to 5.5% compared with 3 to 4% for strawberries,cherries and other fruits compared to the year before.
The last price increase is Soda nonalcoholic beverages will expected to increase from 2 to 3 5 compared to drop 0.9% of price previous year.Other than that the price of sugar and sweets has rise from 2.5 to 3.5%.
