Research Assignment

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Research Assignment

Applying Supply and Demand:  Real-World Examples

Car Sales代写 These causes are exacerbated by fall in demand, emissions woes, the electric car challenge, shift in car ownership and Brexit.

World Car Sales Will Fall More Than 4 Million In 2019

Winton (2019) noted that world car sales are expected to fall by 4 percent this year. The dipping of sales is triggered by the United States sanctions policies and fall in China’s sales. These causes are exacerbated by fall in demand, emissions woes, the electric car challenge, shift in car ownership and Brexit.

The car sales previous year did not grow due to a slump in demand in China being the world’s largest car market (Winton, 2019).  Car Sales代写

This has affected trade between Washington and Beijing since there is no confidence in the China market. The emissions attentions due to climate changes have left car manufacturers stranded. Governments and consumers are switching to low emission or emission-free alternative which further reduces gasoline car market. governments have started to adopt tougher laws that regulate carbon dioxide emissions in the bid to tackle global climate changes. Car Sales代写**范文

Thus, to attain lower emission standards, consumers are demanding electric cars. However, carmakers have not adequately shifted to this market change due to complexity in changing operations that require huge investment.

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Besides, there is a trend in a shift away from ownership.  Car Sales代写

The new technologies in cars are dramatically changing the relationship to car ownership. The emergence of driverless cars gives car people options to rent or share a car rather than own it. The shift will reduce the cost of traveling and hence ownership becomes less appealing. Conventional car companies have to go through competition from Uber and Google’s Waymo. Critically is the effect of Brexit on car industry that has affected how car companies are making investment decisions. The U.K. car industry has reduced investment in the last two years due to market, economic and political speculation. Car Sales代写**范文

The industry is forecasted to recover after 2021 but before then the car market has to endure losses. China will be hit the hardest with sales falling by 15 percent. Thus, few firms will export to China and sales will be sluggish in Europe. The United States will also suffer the same consequences.

Electric Car Demand Rises But Consumer Gloom Hits The Overall Market      Car Sales代写

On the contrary Financial Times demonstrate how traditional cars are losing grip of the market. The sales of electric cars in the United Kingdom has increased in the last few months while the overall market is plummeting (Campbell, 2019). The increase in sales also recorded an increase in the battery market by 3.4 percent in August 2018. The general market for cars lowed by 1.6 percent to 92,573 in the same month. Car Sales代写**范文

Diesel car sales reduced by 12 percent in three years consecutively. The car sales in 2019 fell by 3.4 percent compared to the previous year. The slumping in the demand for traditional cars is attributed to the number of factors as discussed in the summary above. Car Sales代写**范文

According to Campbell (2019) Tesla Model 3 is the third bestselling electric car and a brand of the month. The model made a sale of 2,082 in that month ahead of Ford Focus with sales of 1,886. The two leading were the VW Golf and Ford Fiesta with sales of 3,439 and 3,978 respectively. Notably, although electric cars are tremendously doing well, cars have a long way to establish a strong market.

Applicable Demand and Supply Graphs          Car Sales代写

a. The applicable graphs in the first article are B

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The above graph represents a shift in the demand curve inwards and to the left to D’. It is an indication that the number of conventional cars demanded has been affected by other factors other than price. The graph shows that consumers are willing to pay less possible quantities of goods supplies. The overall effect is the shift in equilibrium price and quantity demanded and supplied cars in 2019 from PQ to P’Q’. Car Sales代写**范文

In this context, the quantity demanded of conventional cars is affected by Brexit, growth in electric cars, shift in ownership, global climate concerns, as well as the overall slump in demand. A new equilibrium, companies get lower and lower returns for the investment and customers’ preferences are changing in the favor of electric cars. There is a possibility that some companies will change the market to electric cars regardless of operational complexities.

b. The applicable graphs in the second article are A and C        Car Sales代写

Graph A below shows the shift in the demand for electric cars to the upwards and to the right at D”. The change is attributed to the changes in other determinants of demand other than price. It shows that consumers are willing to pay more for all the quantities supplied in the market. The equilibrium price and quantity demanded and supplied shift to the right from PQ to P’Q’.

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The scenario is caused by changes in preference to electric cars over conventional cars, government sanctions to reduce carbon dioxide emission, global climate concerns and shift in car ownership. The changes in the market were at the detriment of the market for conventional cars. Car Sales代写**范文

Graph C, on the other hand, shows the shift in the supply curve to the downwards and to the right. The shift is affected by changes in other determinants of supply other than price of the product. The graph shows that suppliers are willing to bring more products to the market at lower prices for the quantity demanded. The results decrease in prices and increase in quantity demanded and hence the shift in equilibrium price and quantity from PQ to P’Q’. Car Sales代写**范文

In this context, electric car manufacturers may be willing to produce more because they anticipate an increase in demand owing to the government regulations and changes in customer preferences in favor of the product. The government is also supporting the adoption of electric cars and therefore reduce taxes and give other incentives. As a result, to sell extra, suppliers will be required to reduce prices. The scenario will happen to the electric car market in the near future when more companies shift their production.

References          Car Sales代写

Campbell, P. (September 2019). Electric car demand rises but consumer gloom hits the overall market. Financial Times. Retrieve from https://www.ft.com/content/3a8c2382-cfbf-11e9-99a4-b5ded7a7fe3f

Winton, N. (June 2019). World car sales will fall more than 4 million in 2019; report. Forbes. Retrieved from https://www.forbes.com/sites/neilwinton/2019/06/12/world-car-sales-will-fall-more-than-4-million-in-2019-report/#1388d7a42263

 

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