Economics Today and Tomorrow, Florida

"Grandma, Buy Me That"

Introduction
In this chapter, you learned that demand is influenced by changes in the population. Did you know that in a recent year new grandparents spent an average of $505 on toys for each of their grandchildren—a 100 percent increase in what they demanded, or spent, per grandchild in the previous decade? Assume you work for a manufacturer of electronic toys and games. You want to sell to the "new" grandparents—those ages 45-64—but you're not sure how population changes in the future will affect this grandparent market. You decide to check for information on the Internet.

Destination Title: U.S. Census Bureau Population Projections

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Directions
Start at the Census Bureau Web site.

• Look for the National Population Projections and click on the “Census 2000 Projection.”
• Click on table 2a in the appropriate format for your computer. Table 2a provides a projection of the total resident population in 10-year increments by age and sex.

1.		How many people are included in the age range from 45-64 for the year closest to the current year on the table?
2.		How many people will be in the 45-64 range ten years from now?
3.		What percentage of the total population will this age group be ten years from now?
4.		What trends in grandparents' spending do you think will continue?
5.		Based on what you have learned from the Census Bureau, write a short report to the president of your company making a recommendation for target advertising to the grandparent market. Include any charts or graphs that support your conclusions.