INTRODUCTION

How well do you know and understand the market system and demand?
The following assignment is based on Web-based question number 3-2 from the McConnell Web site.
There are many factors, including the number of consumers, that influence market demand. Of course, entrepreneurs must project the demand for their product before determining how much output to produce. Business people often use population projections as one means of projecting changes in demand.
As economic consultants, you and your partner(s) have been asked to forecast the demand for the three products listed below based solely on population projections.
  1. clothing for children four years of age and younger
  2. music CDs for teenagers 15-19 years old
  3. housing for senior citizens 85 years of age and above.
With your partner(s), project the change in demand that will occur for each of the above products in each of the countries assigned to your group. Base your projections on the population changes for each of the three appropriate age groups. Population projections can be found using the U.S. Census Population Pyramids web site.
Which country would you expect to have the greatest percentage increase in demand for clothing for children four years of age and younger in the year 2050? For music CDs for teenagers 15-19 years old? For housing for senior citizens 85 years of age and above? Show the approximate changes for each age group in each of you countries.
Which country would you expect to have the greatest absolute increase in demand for clothing for children four years of age and younger in the year 2050? For music CDs for teenagers 15-19 years old? For housing for senior citizens 85 years of age and above? Show the approximate changes for each age group in each of you countries.
 
Group 1 Group 2 Group 3 Group 4 Group 5 Group 6
France 
Guatemala 
South Korea
Japan 
Mexico 
Saudi Arabia
Afghanistan 
Germany 
India 
Australia 
South Africa 
United States
Belgium
Iraq 
Poland
Brazil 
Ethiopia 
Pakistan

After completing your projections, exchange your work with another group and comment on their projections.
 

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Last updated August 19, 2004

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