Analysis Of Food Carts

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Economic Concepts:
1. Supply and Demand
More food carts showed up, selling the same products which mean the supply curve shift outward. Since there was an increase in supply (food carts). Consumers had more choices to pick from. This results in less business for Mike’s family’s food cart. This also creates competition making prices drop and ultimately lower the revenue.
In the Story: More food carts show up beside their location. This slows down business drastically (page 10)
2. Consumers and Suppliers
After Mike introduced his idea of serving Korean food, it is a big hit with customers. The Korean food causes an increase in demand from customers’ which has a direct relationship with the supplies, causing them to cook and serve more Korean food.
In the Story: Mike comes up with an idea for his Grandmother to cook and sell Korean food to customers at the food cart. He also renames the food cart to “The Have a Good Day Cafe,” because that’s what his parents say to customers’ everyday. Page (11)
3. Consumer Preferences
Customers demand Korean food so they get it. The Korean food taste different and influences the customer`s preferred product. The market for Korean street food is very big, and attracts many hungry customers that want to try something new.
In the Story: As Mike and his Grandmother prepare the Korean food, customers line up to try to delicious smelling food. (Page 13)
4. Elasticity
Judging from the all positive comments from customers, we can

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