Supply & Demand Analysis
Market demand represents the sum of the individual demand for a commodity (a good or a service) from buyers in the market. If there are more buyers who are willing and able to pay for a commodity, then market demand at each price level will rise. On the other hand, market supply represents the total quantity of a commodity that producers are willing and able to provide to the buyers at a given price level. Market equilibrium occurs where the quantity supplied equals the quantity demanded, and the market price (equilibrium price) is set at that quantity (equilibrium quantity).
The equilibrium price and equilibrium quantity are not static, however, meaning that they change due to changes in market demand or market supply. A commodity that once was popular and its production was profitable, for example, might lose popularity. As a result, its price declines and its profitability declines, too. Whenever the demand for a commodity rises or declines and whenever the production of a commodity expands or shrinks, it is certain that a market force or a set of forces have taken place to cause this change. At the same time, whenever market demand and/or market supply change, the market price and quantity of that commodity changes, too.
Dynamic and free markets are constantly changing due to changes in factors (non-price determinants) that affect either demand, supply, or both. Analyzing and understanding the forces behind the shift in market demand and market supply determines the growth pattern of the commodity.
Supply & Demand Analysis
Assignment Description
In this assignment, we are going to analyze the changes in market demand and market supply for a commodity (a good or a service). In addition, we are going to analyze how the changes in demand and supply affected the market price and production of this commodity. To do so, we are going to address the key factors (determinants) that have caused the shift in demand and/or the shift in supply. The goal here is to provide an objective analysis of the forces that have caused this change to better understand the behavior of the market and to determine the potential growth or decline for this commodity. Some of the commodities that have experienced a drastic change (an increase or a decrease ) in supply and/or demand in recent years are organic foods, social media, higher education, online education, healthcare services, online banking, online shopping, DVD players, digital cameras, fidget spinners, health clubs, bottled water, landlines, Cash for Gold, and fried food. You could use one of these commodities for your study or choose one you are interested in.
To start, select a commodity that you wish to analyze to determine changes in its market demand, market supply, equilibrium quantity (output), and equilibrium price.
Your presentation needs to be structured with consistent and clear thoughts. It also needs to be supported by actual data. Your results need to be based on solid facts. Your conclusion and opinion need to be thorough and based on your findings and understanding of supply and demand determinants.
Slide Number Requirements
Four to eight PowerPoint slides, not counting the separate Title Page slide and the separate References slide.
Presentation Structure, Content and Requirements
· Title Page slide:
· File Type: MS Office PowerPoint
· Title of the presentation
· Name of the author (your name)
· Email address of the author
· Class name
· Professor’s name
· Date
· There are 4 sections to this case study (Introduction, Data, Analysis, Conclusion). You must have these 4 section/headers in your PowerPoint since each section has its own marks/points (see rubric).
· Introduction slide:
Supply & Demand Analysis
· Describe your selected commodity and the market this commodity targets (geographic or demographic).
· State when, how, and why the commodity has become popular or less popular.
· State the factors (demand non-price determinants and supply non-price determinants) that have caused its supply and demand to change and how those changes affected its price. Please stick to 2 total non-price determinants. Basically, why has demand and supply for that commodity changed?
· Data slide(s):
· Obtain data from at least three credible sources (not Wikipedia) to provide facts about the changes in demand and supply for that time period.
· Market Equilibrium Graph of the commodity showing 2 non-price determinant shifts in Demand or Supply or Both (Graph)
· Industry Report on the sales of the commodity (Chart/table/graph)
· Company Report on the sales of the commodity (Chart/table/graph)
· Use tables, graphs, and figures to support your argument. You could use figures that show the changes in demand and supply, as well as changes in the market price for the commodity over time.
· No explanation of the data, just 3 data pieces with titles and sourced.
· Findings and Analysis slide(s):
Use the findings from your data section to explain the growth or decline pattern of the supply or demand:
· Did the data show that the commodity experienced growth or decline, and why?
· If the supply or demand grew, state the factors that led to this growth.
· If the supply or demand declined, state the factors that led to the decline.
· How did this change impact equilibrium quantity (output), and equilibrium price?
· Conclusion and Recommendations slide(s):
Provide your own final thoughts, opinion, and understanding of the outcome by providing answers to the following questions:
· Do you believe this commodity is profitable for its producers? State why
· Should the producer continue to produce the commodity? State why
· Or should they modify the commodity or produce something different?
· What should/could the producer do to increase their revenues?
· References slide:
· Use at least three reliable sources to obtain facts, data, news, updates, graphs, and so forth.
· Cite all sources used. The references need to be in APA format.
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Describe your selected commodity and the market this commodity targets,
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State when, how, and why the commodity has become popular or less popular,
-
State the factors (demand non-price determinants and supply non-price determinants) that have caused its supply and demand to change and how those changes affected its price,
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Obtain data from at least three credible sources to provide facts about the changes in demand and supply for that time period,
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Did the data show that the commodity experienced growth or decline, and why?,
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How did this change impact equilibrium quantity (output), and equilibrium price?,
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Do you believe this commodity is profitable for its producers? State why,