An article in the Wall Street Journal on the market for traditional canned tuna stated the following two facts:
i. Firms selling traditional canned tuna are struggling to connect with millennial and generation Z consumers, “who favor fresher, less-processed options” in the food they eat.
ii. Firms selling traditional canned tuna are facing competition from firms that offer tuna for sale in “pouches and kits with trendy flavors or as a healthy snack.”
a. From this information, can we conclude that falling sales of traditional cans of tuna is likely the result of a movement along the demand curve for traditional cans of tuna or a shift in the demand curve? Briefly explain.
b. Which would be better news for firms selling traditional canned tuna: Fact (i) is more important in explaining their declining sales than fact (ii) or the reverse? Briefly explain.