Jordan Schlender
As we approach the Easter holiday, it probably doesn’t catch you by surprise when you see plastic eggs and piles of candy lining the store shelves. Normally Halloween classifies as the “candy holiday,” but Easter ranks second. Every one in four consumers who celebrate, spend a total of about $16.8 billion dollars on the holiday; this is about $145.28 on average per person (Report). About 90 million chocolate Easter bunnies, 700 million Marshmallow Peeps and about 16 billion jelly beans will be bought each year. This demand for candy has increased over the years. Compared to 2011, the demand increase has escalated by about eleven-percent (Report).
As we approach the Easter holiday, it probably doesn’t catch you by surprise when you see plastic eggs and piles of candy lining the store shelves. Normally Halloween classifies as the “candy holiday,” but Easter ranks second. Every one in four consumers who celebrate, spend a total of about $16.8 billion dollars on the holiday; this is about $145.28 on average per person (Report). About 90 million chocolate Easter bunnies, 700 million Marshmallow Peeps and about 16 billion jelly beans will be bought each year. This demand for candy has increased over the years. Compared to 2011, the demand increase has escalated by about eleven-percent (Report).
Gwartney
As the visual demonstrates, when the demand curve shifts from D1 to D2 during the holiday season, this creates a higher point of equilibrium between suppliers and consumers. This means the selling price for eggs alone, will increase drastically. In fact, overall as easter egg hunts and celebrations become bigger and better than ever, producers are able to increase the supply of Easter goods. This brings in more revenue as they also increase the prices around Easter time for their benefit.
If the price of P1 stayed consistent all year round, during the holiday season there would be a higher demand than suppliers are willing to supply, so this is why it results in a shift to the right- so the price of equilibrium changes as well (Gwartney).
No matter what their motive is, people will continue buying products relating to Easter. Between cards, outfits, and candy, the majority of the product goes toward family members and for various parties. Most think the easter candy tastes awful because chocolate bunnies are a million times sweeter than your average candy bar, but people continue to purchase the chocolate bunnies because they are easter related and children would rather receive bunnies in an Easter basket than a Kit Kat that they could buy any time at the store.
One controversy is about whether all of the bunny decorations and candy take away from the true meaning of Easter. As the holiday itself relates to Christian ideals, the church attendance rates increase specifically increase on this day.
As indicated, the church attendance is expected to increase by almost double this year (Rankin). Churches are doing all they can to bring people into the church. With the holiday, they increase the amount of activities they offer and amp up their services to draw in more attendance after the holiday as well. At my church, they offer a giant egg drop where they drop thousands of eggs from helicopters in an open field. Families love this event. But churches don’t only put this on for appreciation, they use the holiday for their advantage in hopes of recruiting new regular attending members.
This isn’t just churches. Stores go all out with decorating their stores and offering the best products. There is competition between the goods at various stores and when they set them out. Just like Christmas decorations, Easter goods make appearances earlier and earlier each year, making people eager to buy them specifically from their store. As spring approaches, most people can’t resist.
Altogether, the overall demand for Easter goods/ clothing and decorations increases drastically, giving suppliers the opportunity to sell at higher prices. Since people will buy decorations and especially candy, no matter what, both the consumers and suppliers end up happy. The number of candy projected to be bought has only been increasing over the years, and this is because the demand increases each year. This is expected to be this way for the next several years. I hope everyone has a good dentist they can see to get rid of the jelly jeans stuck in their teeth.
Works Cited
- Gwartney, James D. Economics: Private and Public Choice. Australia, South-Western Cengage Learning, 2009.
- Rankin, Russ. “Survey: One in Five Americans Undecided About Easter Church Attendance.” Survey: One in Five Americans Undecided About Easter Church Attendance, www.lifeway.com/Article/research-survey-one-in-five-americans-undecided-about-easter-church-attendance.
- Report, Post Staff. “Easter's Economics.” New York Post, 8 Apr. 2012, nypost.com/2012/04/08/easters-economics/.
Easter definitely brings in a lot of revenue for candy companies The increase in demand for Easter products is due to a change in consumer tastes. No one wants to buy Easter products in September, but spring is the perfect time for it. Overall, with our growing economy, people are able to spend more on Easter because Easter products are normal goods.
ReplyDeleteI agree that Easter is a important candy holiday but what about valentines day because to me v-day would be second after Halloween. You said Easter would be second then there was a graph that said v-day was higher than Easter. It was interesting to see how many peeps and jelly belly's were sold.
ReplyDeleteYou stated that people will buy Easter candy no matter what, so doesn't that mean suppliers can raise prices of the candy, and they will earn more profit? Easter is a great time for suppliers, as the number of people buying their product increases. Also you mentioned the attenders of churches increase, so churches will earn more of a profit as well. I do think that the meaning of Easter has been lost, and most kids grow up thinking Easter is for candy and egg hunts. I think that because Easter is displayed in stores and all over as candy and egg hunts, the image of Easter has changed.
ReplyDeleteEaster is definitely an important holiday for all candy companies because of how high the sales sky rocket during these times. This burst in sales is a good, constant boost for all companies and they will never have to worry about losing this profit because there is no opportunity cost large enough to have people stop buying candy. The benefits of buying the candy and having a fun Easter greatly outweigh the cost of spending your money and risking that you and your children might eat a chocolate or two more than you should.
ReplyDeleteLike many other holidays, Easter creates a shift in demand for candy and other Easter specific items. It’s not surprising that producers would take advantage of this demand and increase prices for Easter related items. Generally that thought process is effective too because consumers want to buy things for their Easter festivities regardless. It’d be interesting to see how closely other holidays compare to Halloween and Easter.
ReplyDeleteProducers definitely take advantage of the Easter Holiday because of this high demand for Easter candies and clothing. Since this holiday only comes once a year, consumers will immediately want to purchase this candy that is shaped like a bunny or an egg, even if it is the same as when it is shaped the same. Due to this high demand, producers are able to up the price, especially for the fact that people will continue to purchase such products despite an expensive cost. It is interesting, however, how people get so into such candy from this holiday even weeks before the holiday begins. Producers lay out their Easter selection weeks in advance, giving them a greater profit.
ReplyDeleteEaster, along with all other major holidays in the US, is greatly beneficial for the economy and increases the nation's real GDP. Also, this is a time for competition in the market place. Companies would compete for the best value in order to bring in the most revenue and make unique items such as peeps to stand out. This competition is very good for the economy because companies would have to spend more money to stay competitive and maybe build new factories.
ReplyDeleteI thought you included solid evidence and effective visuals to support your statements; however, your post could’ve been improved even more by analyzing the specific determinants which cause the change in supply and demand. Several determinants could be argued for, but personally I would say the change in demand is caused by consumer tastes/advertising. As the Easter season approaches, consumers get in the mood for jellybeans and all the goodies that the holiday brings, and thus are willing to by much more of it. Similarly, the determinant which causes a change in supply is seller expectations. Sellers know that there is a much higher demand during the Easter season, and thus wait until then to sell their goods at higher prices.
ReplyDeleteI had no idea how much money people spent on Easter candy/baskets! However, I don't know if people will necessarily buy the products "no matter what". Maybe some people will, which is why the average spent per person is so high. But not everyone will. Many people would look for the cheaper or sale items. I do agree with you that this aspect of Easter is more of a cultural thing and not a religious one. The image of Easter has definitely changed.
ReplyDeleteIt's not a surprise that Easter follows in second since it is a religious holiday. I feel as if the price increases, people will not continue to buy products, and the demand will decrease, since it is a religious holiday that not everyone celebrates. However, I do agree that Easter helps boost the economy around this time because of all of the current demand that people portray. Some families only do candy, and others do presents: so it really widens out who buys what and what the demand is.
ReplyDeleteI think that it was good to compare how buyers and sellers are affected during this holiday. But I also think it was important to put in how churches are affected as well. There are many different ways to celebrate holidays and by mentioning both you made it easy for everyone reading to make a connection as many of us have received Easter candy and some are religious. Something that shocked me was the candy statistics you put in this piece, that is crazy. Over all I can agree that Easter does affect our economy.
ReplyDeleteOverall during Easter and other similar holidays candy sellers that supply Easter candy will start to make more profit. Since many people during this season are going out to buy candy therefore the companies will start to get more and more resources in order to make enough candy for selling sometimes this may cause a surplus in companies due to not enough candy being sold and still having some left once the season is over. Although with all of the products that they are producing this does not effect their company much since the income would far outweigh the surplus that would be left over.
ReplyDeleteAlthough I receive the traditional bunny and other little Easter themed candies ever year, I never released how much they impact the economy around this time of the year. I think for families with younger children they will continue to buy, no matter the prices, because they want their children to have the same experience as the many generations before them. However I think that for families with kids that are getting older and moving up towards higher grades they will stop buying them as prices increase because they can understand that they day is actual of religious importance, and not just for fun and candy. Rising prices might also help to bring back the religious aspect of Easter and start to bring back the holiday the way it was intended to be celebrated.
ReplyDeleteEaster is unquestionably a great time both in the literal sense and the economic sense. Everyone benefits from this holiday, from the suppliers that go all out with their decorations to the consumers that participate in their own unique traditions during the holiday. Personally, this time of year has always been one of my favorites. Not only do you get to spend time with your family, but you also get delicious candy and maybe even a small gift during the holiday. Furthermore, the traditional activities I participated in during Easter were always a blast when I was a kid. Who didn't love searching throughout their house for Easter eggs, or opening a small basket to find candy beyond your wildest dreams? Easter has always been a great holiday, and I'm glad that it is as economically successful as it is.
ReplyDeleteI had no idea that the demand for candy has increased by 11 percent. However, I can't believe Easter is the second biggest holiday for candy sales. Obviously Halloween is number one, but I'd imagine Valentine's Day would also cause a huge increase in demand for sweets.
ReplyDeleteI knew that people bought candy on Easter, but definitely did not know it was as much as $16.8 billion in total. I would think, that with the growing diet culture in our country, that the demand for this candy would go down, but it is interesting that over the past 6 years there was an increase in demand. It also never occurred to me that eggs would cost more during the easter season, and I’m sure suppliers are very happy about that. It was interesting how you talked about unreligious events that churches put on, and mine also has an egg event. I do think, though, that people looking for a deal should buy their disposable eggs (the plastic ones) after easter when they are on sale, and save them for the following years. This expectation of price would help the consumer.
ReplyDeleteMy family spend our Easter money on a big brunch with our entire family. Although churches and stores take part in the Easter festivities, I think restaurants also take advantage of Easter. It’s sometimes easier to go out the a restaurant to eat on Easter, especially when celebrating with a large family so no one has to cook. However, it can get really expensive depending on the restaurant. Either way, Easter is definitely a beneficial time for our economy. Spring break falls around Easter, so I feel like that also boosts the economy with all the traveling and eating out.
ReplyDeleteIts miraculous how much people spend on easter. Granted coming from a business owner side of it this the best thing ever since they would be getting a hole bunch of revenue like you said. During the holidays i hate being a consumer for how expensive it is but as a business person i would love the holidays.
ReplyDelete3 of 4 people in America celebrate Easter, and that amount of people can really make a difference when it comes to demand. Easter candy adds more to the holiday because it's not something that you have year round. This causes an increase in production and cost as well, because if the demand goes up, the price will go up. It used to be more popular to hide eggs and have small toys in Easter baskets, but just like everything else, Easter baskets and their prices have gotten bigger over the years. This means purchasing more candy to fill them.
ReplyDeleteI was unaware how expensive Easter is and how much we spend on Easter. I had always assumed that Easter was a holiday that not many people spent much on. I'm a Christian, so my family I guess has always focused more on the spiritual side of Easter. We do fun things but we don't buy that much candy, so it shocked me to hear the prices and placement of Easter on the most candy sold scale
ReplyDeleteAlthough I receive the traditional bunny and other little Easter themed candies ever year, I never released how much they impact the economy around this time of the year. I think for families with younger children they will continue to buy, no matter the prices, because they want their children to have the same experience as the many generations before them. However I think that for families with kids that are getting older and moving up towards higher grades they will stop buying them as prices increase because they can understand that they day is actual of religious importance, and not just for fun and candy. Rising prices might also help to bring back the religious aspect of Easter and start to bring back the holiday the way it was intended to be celebrated.
ReplyDeleteI never knew there was so much candy sold during these holidays. I found it interesting that there is a competition between churches, stores, etc. The amount of money generated a lone must offer something greater after the whole holiday. Perhaps jobs increase during the preparation too which helps out the economy in the long run.
ReplyDeleteEaster does have a big impact in the economy. Businesses revenue increase dramatically of Easter. Many people celebrate Easter creating a huge spending spree to get what is need. The opportunity cost for businesses is that they have a chance to bring in a lot of revenue from one holiday. Although consumers do spend a lot over Easter, it helps small businesses grow which helps the economy.
ReplyDeleteThe price of Easter and all its essentials is definitely high, but it honestly doesn’t surprise me. If there ever exists a holiday that gives people the excuse to spend money on treats and toys, people will do it. The opportunity cost of the celebration with these items is worth it for people to spend money on it. I’m not religious or anything so I’ve never gotten into Easter in anyway like that, but when I was little my parents would get my an Easter basket with candy, chocolate bunny, and toys. Today now that I’m a lot older I usually just go buy the discounted candy myself the next day after Easter when it all goes on sale since I don’t really have a need to have a celebration with the candy on the actual day. It all just depends really on what certain people celebrate and how important traditions like Easter baskets, candy, and toys are to them.
ReplyDeleteIt’s no surprise that the demand for candy increases dramatically around this time of year. Personally I work at Walgreens and over the past couple weeks people have already started stocking up on their Easter candy and other things involved with Easter. People are getting more and more extravagant and they are buying larger amounts of candy and other items. It’s clear that the supply of these items increases as well because people are willing to pay more for these specialty items.
ReplyDeleteIt's surprising how much candy is bought over Easter, and how dependent some stores are on the revenue Easter brings in. I agree that Easter is a reliable source of income for a lot of places, considering it's a holiday and therefore will be celebrated by a lot of people. I wonder how many people participate in the candy sales, even if they don't necessarily celebrate Easter. Clearly those buying candy and little gifts for easter baskets think the opportunity cost of creating the basket for kids and loved ones is worth the money it took to purchase the supplies and candy. Also, I think Easter has been extended, since Easter sales tend to begin about a month in advance, which is a good idea for businesses to get as much revenue out of the holiday as they can.
ReplyDeleteIt's baffling how much money Easter rakes in for companies, but I disagree with your notion that people will continue to buy Easter products no matter what. Easter is extremely popular, however, every product has its breaking price. Because Easter has been celebrated and commercialized for so long now prices for Easter goods have likely reached near their equilibrium price. This means that suppliers could increase their prices, and have likely tried in the past, but many consumers would not continue to purchase their products. Along with this, while there are name brand Easter product suppliers, these companies do not have a monopoly on the market by any means. If any one company were to jack up their prices it would simply result in another company taking advantage of the opportunity and advertising their far lower prices.
ReplyDeleteIt's quite surprising people will spend on holidays while the billions of dollars are split between millions people, while prices go up, people will continue the holiday because of tradition. Easter like any other holiday is an excuse to mark up prices on candy to bring in revenue. It marks perfect sense from a business standpoint. While these holidays do help businesses they help the economy because consumers start spending money, which will help out.
ReplyDeleteEaster along with other holidays such as Christmas and Halloween bring in so much revenue and now businesses are taking advantage of how popular the demand is and are increasing the prices. Sadly, I believe that even with the prices raised, people will continue to buy the products. Like Jordan said, kids don't want kit kats and Hershey bars on Easter, when they can have chocolate bunnies and Easter themed candy. Although some parents might stop buying the candy, there will still be a big chunk buying the more expensive product.
ReplyDeleteI never thought of Easter, of all holidays, to be one that companies make money off of but now I can see why. I wonder if one day the demand for Easter treats will decrease, considering our nation is slowly moving toward having healthier choices of food, which might decrease the price of candy altogether. Or maybe Easter will be the only time that people will eat candy, kind of like how Thanksgiving is the day where people will pig out the most compared to a regular day, which it already is but it might grow to a much larger scale and candy will rarely be supplied and sold before and after Easter.
ReplyDeleteIt is unbelievable the amount of candy is bought at this time. It is interesting to hear how each holiday has its own niche with consumers. It seems like now day people can't celebrate the spiritual parts of holidays, like Christmas and Easter, without celebrating with gifts and candy. Producers take advantage of this increase in demand with an increase in supply. They will also want to lower prices so that consumers will buy more of what they are selling. Families with younger children might continue to buy these products no matter what the prices are, because they want their children to have the same experience as their parents and other kids around them have had. However for families with older kids they will buy less as prices increase because they know the day is actual for the religious importance. Rising prices will help to bring the religious aspect of Easter back and celebrate the holiday the way it was intended to be celebrated.
ReplyDeleteWhile I was aware that there was an increased demand for candy around Easter, I had not known that the total consumer expenditure was so high. It is interesting that Easter has also become a holiday intertwined with not just religion, but also American culture in general. Many public schools plan their spring break around Easter, accommodating the holiday and making it an event that affects most of the population. Easter also seems to be one of the more expensive holidays as, much like Christmas, families often buy their children new clothes either specifically for the holiday or for the warmer months in general. Overall, Easter, as many American holidays, does retain its original significance, but has in some ways evolved to encompass a more universal approach that allows industries to market to a wider audience.
ReplyDeleteIt's interesting to see how the demand for certain things changes in correlation to holidays and times of the year. With Christmas it's toys and gifts, Easter and Halloween it's candy, etc. You can definitely see this in stores too as the times get closer or farther away. After Easter and Halloween, when people don't want candy anymore, all the sale racks are filled with leftover sweets. So sometimes it's helpful to plan ahead for the holiday and forsee the future price increases and perhaps purchase candy for the holiday a couple weeks early.
ReplyDeleteNot only does the price of certain candies go up during the Easter season, but gas prices as well. Suppliers know that demand will be inelastic during this time of year and they take advantage of it by raising prices significantly.
ReplyDeleteThe sheer scale of the holiday market is outstanding, Easter alone grossing 16.4 billion ever year and still increasing. The crazy thing is that Easter the 4th highest grossing holiday in the U.S. With consumer spending 630.7 billion on Christmas every year, which is 10 times the income from every other major holiday combined. The reason achieve these insane numbers is the strategic advertisements and commercials that are made in the days following these holidays. This entices the consumers to go out to stores and drop 50 bucks on candy for Easter.
ReplyDeleteFor suppliers that provide Easter themed candy, this the perfect time of year for them. The suppliers are even smart when pricing candy because they increase the prices, especially since they know people are willing to pay more for the Easter theme. Also, churches may have lack of participation just because our society seems to stray away from attending church due to people's stressful, busy lives. In order to attract more people to attend church, there should be activities held after mass like an Easter egg hunt for kids so they are more enticed to come.
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