Practise defining demand and supply and explaining how income, tastes, competition, costs or capacity shift them, changing equilibrium price and the sales prospects of a business.
Fizzy Drinks (FD)
FD is a private sector business that manufactures an international brand of carbonated drinks. Its slogan was 'A premium drink for premium customers'. The market for FD's drinks is very competitive, with 7 national and 12 international brands all competing in the same market. Recently FD lost the title of market leader to TR, one of its largest competitors. TR is a multinational public limited company.
Table 2.1 FD financial data 2023
Employee morale has dropped as a result of the negative feedback. Key employees have left to work for FD's competitors. The lack of experienced employees has led to a drop in the productivity of the production process.
Explain the term demand.