Economics Today and Tomorrow

"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.