Tequila Supply, Demand and Price Change Free Essay, Term Paper and Book Report
In the mid to late 1990s, tequila producers experienced a change in supply, demand and pricing. Tequila had become very popular with people of all ages. At one point, the tequila market was in equilibrium. Equilibrium is a concept in which opposing dynamic forces cancel each other out (Economics. Colander, 5th ed). Economic and market forces were not a problem because there was plenty of tequila to go around and it was affordable.
The change in demand came when consumers (party people) began to take advantage of the drink that taste pretty good, was not that expensive and was readily available. Tequila also became popular amongst the more sophisticated people. This group began to demand tequila that was %100 blue agave made for sipping. The demand for pure tequila meant the use of more agave cactus. When tequila began to gain popularity at party time, people began to stop and think about what it was about this drink that made their parties that much better. Consumers soon realized that the main ingredient of tequila only made up %51 percent of the drink. Brands like Jo......
Word Count: 702
Page Count: 2.8 (250 words a page / double spaced)
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