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Essay / Economic Analysis of the Ice Cream Industry - 832
The economic situation is an environment to consider when analyzing consumer behavior for this product. Disposable income is very important for ice cream consumption. Since ice cream is generally considered a luxury product, a person's disposable income will affect its demand. Generally, when the price of a normal good increases, we consume less of it; if the price decreases, we consume more of it. However, these prices are relative to the consumer's disposable income. For example, if a person receives a raise and their disposable income increases from $50 per week to $100 per week, their opportunity cost of purchasing ice cream may decrease, leading to an increase in their demand for ice cream. This can happen even if the real price remains the