Managerial Economic Viewpoint of Keya Cosmetics Ltd

Keya Cosmetics Ltd



Demand and Supply Analysis of Keya Super Beauty Soap:

In 2011-2012 the net turnover of Keya Cosmetics Ltd was TK 2,405,182,974. We logically assume that approximately 20% of the net turnover that is TK 480,000,000 was that revenue came from the selling of Keya Super Beauty Soap. We also assume that the average price of soap is TK 30. So approximately 16,000,000 pieces soap was sold in 2011-2012. We know that market equilibrium is a situation in which, at the prevailing price, consumers can buy all of a good they wish and producers can sell all of the good they wish. The price at which Qd = Qs is called equilibrium price and the amount of a good bought and sold in market equilibrium is called equilibrium quantity. From the following figure (1) we find that the equilibrium price is   TK 30 and the equilibrium quantity is approximately 16,000,000.
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Demand and Supply Schedule


|Price                 |Quantity Supplied     QS         |Quantity Demanded Qd               |Excess supply or excess demanded   |
|                       |                               |                                   |(QS-Qd)                           |
|10                     |0                               |31,000,000                         |-31,000,000                       |
|15                     |4,000,000                       |27,000,000                         |-23,000,000                       |
|20                     |8,000,000                       |22,000,000                         |-14,000,000                       |
|25                     |11,500,000                     |20,000,000                         |-8,500,000                         |
|30                     |16,000,000                     |16,000,000                         |0                                 |
|35                     |21,000,000                     |11,000,000                         |+10,000,000                       |
|40                     |25,000,000...