A market exists whenever buyers and sellers meet to exchange goods and services. A mall is a market, a street is a market, your classroom is a market, a garage sale is a market, and even the airplane you ride is a market. Markets are everywhere. Their primary purpose is to get suppliers (producers) and demanders (buyers) together to sell and buy at a price they both agree on.
QUESTION
Overview
A market exists whenever buyers and sellers meet to exchange goods and services. A mall is a market, a street is a market, your classroom is a market, a garage sale is a market, and even the airplane you ride is a market. Markets are everywhere. Their primary purpose is to get suppliers (producers) and demanders (buyers) together to sell and buy at a price they both agree on.
Market demand represents the sum of the individual demand for a commodity (a good or a service) from buyers in the market. 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 or an idea might be a “hot item” and very popular at one point in time where people are willing to pay a high price for it, and producers will be willing to produce more of it because it is profitable. Smoking a cigarette at one point in time was considered a symbol of “a tough man” and smoking was acceptable everywhere, including inside hospitals! But what has changed for cigarettes? Whenever the demand for a commodity rises or declines, and whenever the production of a commodity expands or shrinks, it is certain that at least one market force or a set of market forces have taken place to cause this change. At the same time, whenever market demand and/or market supply changes, the market price and the quantity of that commodity available in the market changes, too.
Dynamic and free markets are constantly changing due to changes in factors (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.
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 will also analyze how the changes in demand and supply affected the market price and production of this commodity. To do so, we will 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 in order 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, cage-free eggs, 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 familiar with or prefer.
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 research should be structured with consistent and clear thoughts. It should be supported by facts and data, and you must base your results on these facts. Your conclusions should be thorough and based on your findings and understanding of supply and demand determinants.
Writing Style and Page Number Requirements
Font Type: Times New Roman or Arial
Font Size: 12
Spacing: Double
Number of Pages: Four to six pages, along with a separate Title page and a separate References page
Outside Sources and TurnItIn Report
Using External Sources: When you use information, facts, or data from external source (articles, news, facts, etc.) in your case study, you must properly cite the sources you obtain the information from using the APA format. A link to APA writing style resources is provided at the bottom of this page.
Content Originality and TurnItIn: The majority of the text in your case study must be your own words, thoughts, opinion, interpretation, and/or viewpoints. The rule is that no more than 20% of the text in your case study can be from outside sources. Make sure you review the TurnItIn score next to your submitted document to verify that it meets the 20% (or less) requirements.
If your submitted case study receives a TurnItIn score (percentage) more than 20% on the report, this means that more than 20% of the content of your case study matches other’s work and is not original. In this situation, you will need to revise the matching text (or a portion of it) in your case study and then resubmit your assignment. Then recheck the new TurnItIn score.
To summarize, 80% or more of your final case study submission should be your own words and 20% or less can include properly cited outside sources. The TurnItIn originality report highlights the portions of the paper that are not original and closely matches another source.
Structure and Requirements
Title Page
Title of the paper
Name of the author
E-mail address of the author
Class name
Professor’s name
Date
Introduction
Describe your commodity and the market that commodity targets. Also, state when, how, and why it became popular or less popular. In addition, state the factors (demand determinants and supply determinants) that have caused its supply and demand to change and how those changes affected its price. Basically, why has demand and supply for that commodity changed?
Data
Obtain data from at least three credible sources (not Wikipedia) to provide facts about the changes in demand and supply.
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.
Analysis
Use the findings from your data section to fully explain the growth or decline pattern of the supply and demand. Is the commodity growing or is it declining, and why? If it is growing, state the factors that led to its growth. If it is declining, state the factors that led to its decline.
Conclusion
Provide your own final thoughts, opinions, and understanding of the outcome. Do you believe this commodity is profitable for its producers? Or should they provide something different instead? Should they modify the commodity? Moreover, if you were to produce this commodity, what would you do to increase your revenue?
Reference List
Use at least three professional sources to support your argument. The references need to be in APA format
ANSWER
Analyzing Changes in Market Demand and Supply for Online Shopping
Introduction
Online shopping has revolutionized the retail industry, providing convenience, accessibility, and a wide range of products to consumers. This case study will analyze the changes in market demand and supply for online shopping, focusing on the factors that have influenced its growth and impact on the market. The study will explore the reasons behind the increasing popularity of online shopping, the determinants of its demand and supply, and the resulting effects on the equilibrium price and production.
Data
To provide a comprehensive analysis, data will be gathered from credible sources to present the changes in demand and supply for online shopping. These sources will include industry reports, market research studies, and reputable publications. The data will be presented using tables, graphs, and figures to support the argument and highlight the trends and patterns.
Analysis
Based on the gathered data, the analysis will delve into the growth pattern of online shopping. The factors contributing to the increasing demand for online shopping will be examined, including:
Convenience and Accessibility: Online shopping offers 24/7 access to a wide range of products, allowing consumers to shop at their convenience without time or location constraints.
Competitive Pricing: Online retailers often offer competitive prices due to lower overhead costs, which attract price-conscious consumers seeking better deals.
Product Variety and Availability: Online platforms provide an extensive selection of products from various sellers, giving consumers access to a wide range of choices that may not be available in local stores.
Technological Advancements: The advancement of technology, including mobile devices and secure payment systems, has facilitated the growth of online shopping and enhanced the overall shopping experience.
On the supply side, the analysis will consider the determinants that have led to the expansion of online shopping:
E-commerce Infrastructure: Improvements in internet infrastructure, logistics, and payment gateways have enabled the establishment and growth of online retail platforms.
Entrepreneurship and Innovation: The emergence of e-commerce startups and innovative business models has contributed to the growth of online shopping, providing new opportunities for sellers and enhancing competition.
Customer Relationship Management: Online retailers utilize customer data and analytics to personalize recommendations, improve customer service, and create a seamless shopping experience.
Conclusion
In conclusion, the analysis of changes in market demand and supply for online shopping reveals a significant growth pattern driven by factors such as convenience, competitive pricing, product variety, and technological advancements. The increased demand for online shopping has created opportunities for entrepreneurs and retailers while providing consumers with greater choice and convenience. As the market continues to evolve, it is crucial for online retailers to adapt to changing consumer preferences and invest in technologies that enhance the shopping experience. Overall, online shopping has transformed the retail landscape and is likely to continue growing, albeit with evolving strategies to meet consumer demands.
Additionally, it is essential for producers in the online shopping market to continually assess the market dynamics and consumer preferences. To increase revenue and profitability, producers should focus on enhancing customer experience, expanding product offerings, and implementing effective marketing strategies. Regular analysis of market trends and competition can guide producers in making informed decisions and maintaining a competitive edge in the online shopping industry.
