Choose A Good Or Service It Should Be Something That Is Curr

Choose A Good Or Service It Should Be Something That Is Currently Av

Choose a good or service. It should be something that is currently available for purchase. Choose the most likely demand shifter (the things that shift demand) for your product and explain why and how the demand curve is most likely to shift if there is a change in that demand shifter. If the demand curve shifts in the way you are suggesting, what will happen to equilibrium price and quantity?

Choose the most likely supply shifter (the things that shift supply) for your product and explain why and how the supply curve is most likely to shift if there is a change in that supply shifter.

If the supply curve shifts in the way you are suggesting what will happen to equilibrium price and quantity?

If both the supply and demand curves shift in the way you suggested in #1 & #2 above, what will happen to equilibrium price and quantity?

Paper For Above instruction

Introduction

The dynamic interplay between supply and demand fundamentally influences the pricing and availability of goods and services in the market. Understanding how various demand and supply shifters affect these curves is essential for predicting market outcomes. This paper explores a specific product—electric scooters—and analyzes the most probable demand and supply shifters impacting its market. It further examines the consequences on equilibrium price and quantity when these curves shift, both individually and simultaneously.

Selection of Good or Service

The chosen product is electric scooters, a popular mode of personal transportation especially in urban areas. Electric scooters are widely available for purchase through retail stores and online platforms, reflecting their current market presence. Multiple factors, such as urbanization, environmental awareness, and technological innovation, contribute to the sustained demand for electric scooters.

Demand Shifter and Its Impact

The most significant demand shifter affecting electric scooters is consumer income, specifically as it relates to environmental consciousness and urban mobility needs. As consumers become more environmentally conscious and seek sustainable transportation options, demand for electric scooters tends to increase. Additionally, improvements in technology that lower manufacturing costs and increase battery efficiency also serve as demand shifters.

If consumer income increases, and if electric scooters are perceived as an affordable and environmentally friendly alternative, demand for these scooters is likely to shift rightward (an increase). This rightward shift in demand results in a higher equilibrium price and higher quantity sold—consumers are willing to pay more for a product they prefer more when their income rises (Mankiw, 2011). Conversely, if consumer income falls or environmental concerns wane, demand may shift leftward, lowering equilibrium price and quantity.

Supply Shifter and Its Impact

The primary supply shifter for electric scooters is technological innovation. Advances in battery technology and manufacturing processes reduce production costs, thereby increasing the supply. When technological improvements reduce costs, the supply curve shifts rightward, leading to a higher quantity supplied at each price level (Varian, 2014).

If technological advancements occur, the supply for electric scooters increases, shifting the supply curve rightward. This movement tends to decrease the equilibrium price because there is more product available in the market, and increase the equilibrium quantity as more scooters are sold at the lower price (Mankiw, 2011). Alternatively, supply can shift leftward due to increased raw material costs or regulatory restrictions, which are less common but significant factors.

Simultaneous Shifts and Market Outcomes

When both demand and supply for electric scooters increase simultaneously (demand shifting rightward and supply shifting rightward), the effect on equilibrium price becomes ambiguous—it depends on the magnitude of shifts. Generally, both shifts lead to an increase in equilibrium quantity.

The price effect depends on the relative size of the shifts. If demand increases more than supply, equilibrium price will rise; if supply increases more than demand, equilibrium price will fall. However, in most cases, the dominant factor is the increase in quantity—more electric scooters will be available and purchased (Casey & Mallick, 2020). Conversely, if demand shifts leftward while supply shifts rightward, the price would decrease, with the effect on quantity still uncertain but likely to stabilize at a lower level.

Conclusion

The market for electric scooters exemplifies how demand and supply shifters influence market equilibrium. Consumer income and technological innovations are significant demand and supply shifters, respectively. Their effects on equilibrium price and quantity depend on the direction and magnitude of the shifts. Understanding these dynamics allows market participants and policymakers to anticipate changes and make informed decisions. As markets evolve, ongoing analysis of such factors remains crucial to adapting strategies for manufacturers, retailers, and consumers alike.

References

• Casey, T., & Mallick, R. (2020). Supply and demand analysis in the electric vehicle market. Journal of Market Economics, 12(3), 145-162.
• Mankiw, N. G. (2011). Principles of Economics (6th ed.). Cengage Learning.
• Varian, H. R. (2014). Intermediate Microeconomics: A Modern Approach (9th ed.). Norton.
• Smith, J., & Johnson, L. (2019). Technological advancements in battery manufacturing. Journal of Sustainable Transport, 5(2), 78-89.
• Huang, Y., & Wang, Q. (2021). Consumer preferences and the rise of electric mobility. Transportation Research Part A, 149, 44-58.
• Lee, S., & Kim, Y. (2020). Environmental policy impacts on electric scooter adoption. Environmental Economics and Policy Studies, 22(4), 477-491.
• Chen, D., & Zhang, X. (2018). Cost reduction through technological innovation in manufacturing. International Journal of Production Economics, 204, 259-268.
• Peterson, P., & Lee, K. (2022). Market response to new transportation technologies. Journal of Business Research, 136, 251-262.
• Brown, A., & Williams, M. (2017). Urbanization and mobility: Trends and forecasts. Urban Studies, 54(8), 1889-1904.
• Nguyen, T., & Lee, G. (2023). Policy incentives and electric vehicle adoption. Energy Policy, 174, 112-123.