Starbucks Corporation

3. Describe factors that could shift the demand curve for the company's product(s) (see the risk factors discussed in the K-10).

I have included in the Unit 5 Course Material link, some guidelines on how to access the K-10 of companies.

Demand factors that can cause the demand for a product or service to increase or decrease and thus cause the demand curve to shift to the right or left include changes in: incomes, tastes and preferences, prices of substitutes or complementary goods, expectations of future prices and the state of the economy, population or demographics, interest rates, legislation, etc.)

b. Describe factors that could shift the supply curve for the company's product(s) (see the risk factors discussed in the K-10).

Supply factors that can cause the supply of a product or service to increase or decrease and thus cause the supply curve to shift to the right or left include changes in: costs of production (e.g. wages, rent, utilities), indirect taxes (such as sales tax), subsidies, expectations of the economy, advances in technology (that increase productivity and reduce costs of production), weather (for agricultural products), etc.

c. Describe whether the company's product(s) would be expected to have an elastic demand or inelastic demand.

Be explicit. Do not just state the demand for this company's product is elastic (or inelastic). Justify your answer. For example, if I have selected Ford company, I could argue that the demand for Ford cars is price elastic because there are many other substitutes which buyers can turn to if Ford increases the prices of its cars