Economic Forecast

Running Head: ECONOMIC FORECAST Economic Forecast Meritus University Economic Forecast The frugal anticipate for Heinz Ketchup testament coer different factors that melt down to the occupy for ketchup and factors that protract to a change in the cost of production. The forecast will also show what economic indicators, Heinz, can continually review, to predict how demand for ketchup will change. This forecast will also help to show what the coterminous two years should be like for these economic indicators. This paper will also show the confidence that Heinz can nurse in these indicators and finally will show the implications of the economic forecast and toll elasticity from the pricing structure. Factors Heinz must look at several different factors to predict how the sales of ketchup would be cloaked. The termss of hamburgers and hot dogs, the price of substitute products, such as, mustard and mayonnaise, and, consumer spending, be some of the factors that Heinz must review to understand what will affect the demand for ketchup. As the price for hamburgers and hot dogs decrease, the demand for these products would increase.

A popular topping for these products is ketchup, so it is reasonable to assume that demand for ketchup would also increase with a decrease in the price for hamburgers and hot dogs. Another factor that will lead to a change in demand of ketchup is the price of a substitute product, such as, mustard or mayonnaise. If the price for one of these products is reduced accordingly consumers may opt for these products over ketchup. The final factor that Heinz should monitor to help predict a change in the demand of ketchup is consumer spending. If consumer spending decreases, then consumers may choose an inferior brand that is sold at a cheaper price over the Heinz brand. Heinz must also be aware of the cost of tomatoes, as this is the prime ingredient for ketchup. A change in price of tomatoes will cause a change in the cost of producing ketchup.... If you want to get a full essay, order it on our website: Ordercustompaper.com

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