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Supply and Demand at Salty Pawz

Scenario
Between recalls on mass-produced commercial dog food and a general understanding of the benefits of a healthier diet for pets, the demand for natural or organic dog food is experiencing a significant increase. Wanda’s treats are more expensive than the mass-produced treats found in most grocery and big box stores, but she prides herself on providing high-quality products and believes that her customers are willing to pay the extra money for quality.

For Discussion
How does Wanda’s strategy of being a high-quality provider take advantage of the shifts in consumer demand for healthy dog treats?

Identify and describe an event that might occur in the economy that would cause Wanda’s strategy to no longer be successful for Salty Pawz. If this event occurred, what actions would Wanda have to take in response, and what impact might they have on her business?