MICROECONOMICS ASSIGNMENT

Ms. ASRA SHAIKH

AIMAN TAHIR 1811103

JAVERIA HASAN 181112

Starmist Paints.

BACKGROUND
Starmist is uniquely identified for producing high quality glitter paints that are
specifically used in occasions like weddings. Starmist SPECIALTY PAINTS is the
manufacturer of Starmist SATINA (SATIN PLASTIC EMULSION), Starmist DIAMOND
(SPARKLING PLASTIC EMULSION) and Starmist METALLIC FINISH ENAMEL.

PRODUCT

STARMIST SATINA
 DEMAND
Indicates the willingness and ability of consumers to buy buckets of paint at different
prices. For e.g. at price 1000 total demand is 5 buckets.

SUPPLY
Indicates the willingness and ability of suppliers to produce and sell buckets of paint
at various prices for e.g. price 900 supply is less than at price 1000

DEALING WITH SHORTAGES AND SURPLUSES

In case of shortage the company increases the production.

In case of surpluses the company introduces market trade offers.

CURRENT MARKET CONDITION

Shortage (high demand due to season that’s why price above Rs1000)

PRICE S
D
(RUPEES)

1000

900 shortage

QTY (BUCKETS)
3 5 7

FACTORS IMPACTING DEMAND & SUPPLY

 Seasonal fluctuations
The product is highly demanded in the wedding season that is from
December till March.
There is a downfall in demand in Ramzan.
 Production issues due to lack of capacity shortage of equipment causes fall
in supply.
PRICING
The equilibrium price charged is Rs 1000 per bucket.

FUTURE GOALS
The company wants to become market leader in future.

RECOMMENDATIONS
Even though starmist has highly innovative due to its USP i.e. glittery paints it still lacks
enough popularity in the market as compared to its competitors like Berger paints
which are more popular among customers.

Hence, the company should spend some of its budget on more advertising and
promotion to increase popularity and thus sales for e.g. introduce free sample trying
on one wall. Also to improve production capacity, the company can rent out more
efficient machinery that can produce different batch of paints at once.

CONCLUSION
The above report is based on primary data that comprises of interview of the
manager at Starmist Paints.