Question

Demand in the refreshment beverage market has been changing due to

Select one

a. changes in the number of buyers

b. changes in taxes in subsidiaries

c. changes in income

d. changes in tastes and preferences

Answer 1

Demand in the refreshment beverage market has been changing due to changes in tastes and preferences.

So Option d is Correct Answer.

Answer 2

Answer:

d. changes in tastes and preferences

Explanation:

The refreshment beverage market (e.g., sodas, energy drinks, flavored waters) is highly sensitive to shifts in consumer tastes and preferences, which are the primary drivers of demand changes in this industry. Here’s why:

1. Health Trends: Rising demand for low-sugar, organic, or functional beverages (e.g., kombucha, electrolyte waters) reflects evolving preferences.

2. Cultural Shifts: Younger generations favoring sustainability (e.g., reusable packaging) or ethical sourcing (e.g., fair-trade ingredients) reshape market dynamics.

3. Innovation Impact: New flavors, limited editions (e.g., Pepsi’s seasonal releases), or celebrity endorsements (e.g., Prime Hydration) directly influence demand.

4. 
   

Why not other options?

• a. Number of buyers: The total population doesn’t fluctuate drastically in short-term market analyses.

• b. Taxes/subsidies: These affect pricing but rarely drive fundamental demand shifts for non-essential goods like beverages.

• c. Income: While income changes matter, beverages are often "income-inelastic"; people buy them even during economic downturns.

• 
  

Example:
The decline in soda sales (due to sugar-conscious preferences) and rise of sparkling water (LaCroix, Bubly) exemplify how taste/preference changes redefine markets.