Ms. Acres owned a pie business with a staff consisting of three-part time workers. Over a six-month period, 4000 pies were sold at $1.50 each pie. Sales increased after to a monthly rate of 8000 pies per month, which increased profits to $12,000 dollars per month. Although, sales increased there was a problem with supply and demand (Ferrell, Hirt, & Ferrell, 2016). Based on this it would have been feasible for the company to expand, but there is no growth because apparently, Ms. Acres wants to keep a high profit. Another solution to the problem is secure financing from a banking institution; however, that will increase the cost of the pies. Finally, franchise the business, but the recipe and method can be lost, and the quality of the pies can …show more content…
and in addition, expanding booth locations with high movement in comparison to their current rivals, Redbox's offers a rental a low expense of their daily rentals at more than more than 50% of the DVD-rental market, compared to their rivals, which provides an amazing advantage. Their booths are also placed in strategically high movement areas (Ferrell, Hirt, & Ferrell, 2016). For example, grocery stores, drugstores, and near food chains. This encourages a rise in sales for the stores that these booths are placed by. From a buyer's point of view, Redbox's system may be financially feasible since it doesn't require a human staffing and the low rental cost can increase consumer traffic. However, there is restricted accessibility, the field staff hired to rotate and restock can limit the variety. The greatest cost and risk for Redbox is content monitoring and obtaining …show more content…
This means if the market is at the equilibrium for its cost and amount, then there is no need to leave that mark. Thus, if the market is not in the equilibrium area, then the monetary pressure emerges, which pushes the market toward the equilibrium cost and the equilibrium amount (Flynn, 2011). In this case, the market equilibrium is currently being affected by the supply and demand. The increase in supplies will move the supply curve outward, which will result in an increase in the equilibrium of quantity and a decrease in the equilibrium of price. Currently, there are not enough workers, for the pie factory and not enough booths for Redbox for the high demand for