n$2016,$ Howard Shultz announced that he would step down as CEO of Starbucks to establish luxury coffee shops that would charge as much as$$ $$12$ for a cup of coffee. Although some analysts questioned whether many consumers would be willing to pay such high prices for$$ coffee, Erich$$ Joachimsthaler, an executive at a$$ brand$-$strategy consulting$$ firm, believes the projects could be successful. Joachimsthaler compared the market for coffee to the market for$$ beer, which has experienced competition from small craft breweries.$$ "They $[$established companies such as Coors and$$ Anheuser$-$Busch InBev$]$ never protected themselves from the high end... I think Starbucks sees that the middle is slowing$$ down."

$$Source: Julie$$ Jargon, "Middle$-$Market Woes Inspire$$ Starbuck's Bet on Luxury$$ Coffee," Wall Street Journal$,$ December$5,2016.$

Briefly explain what Erich Joachimsthaler meant by the$$ "high end" and$$ "the middle is slowing$$ down."

The$$ "high end" likely means

$$

high demand

higher quality

less expensive

products.

Part $2$

$"$The middle is slowing$$ down" likely means

$$

slower production of

lower costs for

less demand by

$$middle$-$income consumers.