Managerial Economics

Please Analyze and explain the theory of Demand and Supply and create the

graph for demonstrating the following scenario and answer the questions:

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● G.R. Dry Foods Distributors specializes in the wholesale distribution of dry goods, such

as rice and dry beans. The firm’s manager is concerned about an article he read in this

morning’s Wall Street Journal indicating that the incomes of individuals in the lowest

income bracket are expected to increase by 10 percent over the next year. While the

manager is pleased to see this group of individuals doing well, he is concerned about the

impact this will have on G.R. Dry Foods.

o Please explain what will happen to the price of the products G.R. Dry Foods sells?

o Why?

 

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