Read summary about the hula hoop scence:The Hudsucker Corporation has decided to sell the hula hoop for $1.79. We see the toy store owner leaning next to the front door waiting for customers to enter but customers are non-existent. Next, the movie cuts to the president of the company, played by Tim Robbins, and we see him sitting behind a big desk waiting to hear how the launch of the hula hoop is going. It does not go well. The price starts to drop, first to $1.59, then $1.49 and so on down until the hula hoop is "free with any purchase." Even this is not enough to attract consumers. So the toy store owner throws the hula hoops out into the alley behind the store. At his point, it is a fluke that changes the direction of the entire movie. When the hula hoops are tossed into the alley one of them rolls across the street and around the block before landing at the foot of a boy who is skipping school. He picks up the hula hoop and tries it out. He is a natural. About this time school lets out and a throng of students rounds the corner and sees him playing with the hula hoop. Suddenly everyone wants a hula hoop and there is a run on the toy store. Preferences have changed, and demand has increased. The hula hoop craze is born and we account for this by shifting the entire demand curve to the right. The toy store responds by ordering new hula hoops and raising the price to $3.99, which happens to be the new market price after the increase, or shift, in demand. Using supply and demand vocabulary and concepts, describe in a paragraph what is happening in the market by responding to the following questions: 1. What market was the producer trying to penetrate when sold the hula hoop idea to the store owner? 2. Why the store owner had to offer the hula hoop for free? Explain. 3. Identify the determinant or determinants that made the children like the hula hoops.
Read summary about the hula hoop scence:The Hudsucker Corporation has decided to sell the hula hoop for $1.79. We see the toy store owner leaning next to the front door waiting for customers to enter but customers are non-existent. Next, the movie cuts to the president of the company, played by Tim Robbins, and we see him sitting behind a big desk waiting to hear how the launch of the hula hoop is going. It does not go well. The price starts to drop, first to $1.59, then $1.49 and so on down until the hula hoop is "free with any purchase." Even this is not enough to attract consumers. So the toy store owner throws the hula hoops out into the alley behind the store.
At his point, it is a fluke that changes the direction of the entire movie. When the hula hoops are tossed into the alley one of them rolls across the street and around the block before landing at the foot of a boy who is skipping school. He picks up the hula hoop and tries it out. He is a natural. About this time school lets out and a throng of students rounds the corner and sees him playing with the hula hoop. Suddenly everyone wants a hula hoop and there is a run on the toy store. Preferences have changed, and
Using
1. What market was the producer trying to penetrate when sold the hula hoop idea to the store owner?
2. Why the store owner had to offer the hula hoop for free? Explain.
3. Identify the determinant or determinants that made the children like the hula hoops.
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