KUCH MEETHA HO JAYE..!!

CADBURY: Cadbury first was a mix of milk and chocolate which is pretty much how the product still is. They came with so many different chocolate and taste and many flavours also.

Some economics concepts applicable on CADBURY are;

·       Demand and Supply: The market system is divided by supply and demand. The demand and supply affected by various factors and have direct impact on profit.

The law of demand is when the consumer is willing to pay Rs. 10 for a diary milk or for silk.

And supply is when the supply of other product remain the same as if they are launching the new product then also the old chocolates collections is still purchased by the consumer.

·       Margin of utility: The quality is the key factor of Cadbury. As the other chocolate are also their but still people remains and stick to the diary milk because it brings satisfaction to them after consuming.

·       Complementary Goods: As the price of dairy milk, silk or other chocolates of Cadbury increases. Hence it’ll have no effect on demand because Cadbury is a brand name. Like we can take NESTLE, AMUL ,etc as an example of complementary goods.

·       Demand Curve: The demand is always high, as the price is still increasing but still the demand is increasing day by day due to consumption done by the consumer.

·       Price Elasticity: If the degree of responsiveness of quantitative demanded towards the change in price.

                                                                As the Cadbury is a brand, so if they raise the price by 30% the demand of that product will automatically drop by 5%.

This means elasticity < 1. Hence, the product has in elastic demand.