Market Overview: When Buyers And Sellers Meet

Overviewa Market Exists Whenever Buyers And Sellers Meet To Exchange G

Overviewa Market Exists Whenever Buyers And Sellers Meet To Exchange G

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 idea might be considered a “hot item” and very popular at one point in time, where people are willing to pay a high price, and producers are willing to produce more because it is profitable. An example includes how smoking cigarettes was once culturally prevalent, symbolizing toughness and being socially acceptable everywhere, including hospitals.

However, shifts in consumer preferences, regulations, health awareness, and technological advancements have altered the demand for cigarettes. When demand rises or declines, and supply expands or contracts, market forces or a combination thereof drive these changes, impacting market prices and quantities available. Biological, social, technological, and policy-related factors are key determinants (or influencers) of demand and supply. Understanding these factors helps clarify whether a commodity's market is expanding or contracting, and informs projections about future growth or decline.

Assignment Instructions

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 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: 5 pages

- Outside Sources and TurnItIn Report: Use external sources, properly cite using APA format. The majority of your text should be your own words, with no more than 20% from outside sources. Revise if necessary to meet the originality requirement.

Analysis Guide

Describe your selected commodity and its target market. Explain when, how, and why it gained or lost popularity. Identify the demand and supply determinants that caused changes and how those affected the price. Use credible data sources to support facts, including tables, graphs, and figures showing demand, supply, and price changes.

Interpret your data: Is the commodity growing or declining? Detail the factors behind its growth or decline. Discuss whether the commodity remains profitable for producers or if modifications or different strategies are advisable to increase revenue.

Conclusion and Recommendations

Summarize your insights about the market trend of the commodity. Offer your opinions on its future profitability and potential strategies for producers to optimize revenues or adapt to changing market conditions.

References

Include at least three credible sources, formatted in APA style, to support your analysis and conclusions.

Paper For Above instruction

Introduction

The market for electric vehicles (EVs) has experienced significant transformations over the past decade. Initially, electric cars were niche products, primarily purchased by environmentally conscious early adopters. However, recent advancements in technology, government policies promoting clean energy, declining battery costs, and increased consumer awareness about environmental issues have dramatically expanded the market for EVs. This shift exemplifies a substantial increase in market demand, propelled by various demand determinants such as environmental concerns, government incentives, and technological innovations. At the same time, supply-side factors like improved manufacturing processes, investments by automakers, and economies of scale have increased supply, resulting in a notable decrease in the price of EVs.

The target market for EVs primarily includes environmentally conscious consumers, tech enthusiasts, and urban residents seeking cost-efficient transportation. Earlier, the demand was limited due to higher prices, limited model options, and lack of infrastructure. Over time, increasing awareness about climate change, stricter emission regulations, and improvements in charging infrastructure have contributed to heightened demand. Simultaneously, automakers’ investments and technological advancements have shifted the supply curve outward, reducing prices and making EVs more accessible. This dynamic interaction between demand and supply has resulted in notable market growth and a shift towards electric mobility.

Analysis of demand and supply changes reveals key drivers behind this trend. For demand, environmental awareness stands out as a dominant determinant. Consumers are increasingly considering sustainability in their purchase decisions, influenced by media coverage, policy changes, and social movements advocating for green energy. Additionally, government subsidies, tax credits, and regulations banning internal combustion engines in certain cities amplify demand for EVs. On the supply side, technological improvements—particularly in lithium-ion battery production—have decreased costs, enabling automakers to expand their EV offerings at lower prices. Large investments by companies like Tesla, General Motors, and Volkswagen have also resulted in an increased supply, further accelerating market penetration.

Graphical data illustrates these trends. For example, U.S. EV sales have risen exponentially from about 50,000 units in 2012 to over 600,000 units in 2022 (Alternative Fuels Data Center, 2023). Correspondingly, the average price of EVs has decreased from over $40,000 in 2012 to approximately $35,000 in 2022, attributable to technological efficiencies and economies of scale (BloombergNEF, 2023). The demand curve shifted outward as consumer preferences moved towards environmentally friendly vehicles, while the supply curve also shifted rightward due to technological progress and increased production capacity.

The growth of the EV market points to a resilient and expanding industry. The increased demand has outpaced initial supply levels but now is matched by rapid supply expansion, leading to a new equilibrium with higher quantities and decreasing prices. The trend suggests continued growth, especially with governments worldwide committing to net-zero emissions targets and automaker commitments to phase out internal combustion engines by 2030. However, challenges remain, including charging infrastructure development, raw material shortages, and market competition.

From a profitability perspective, automakers investing heavily in EV technology are optimistic about long-term gains. As demand stabilizes and supply continues to grow, prices should further decrease, widening profit margins. Nevertheless, to optimize revenues, producers could focus on innovation in battery technology, expanding charging networks, and offering differentiated models to capture diverse consumer preferences.

Conclusion

The survey of the electric vehicle market demonstrates how demand determinants like environmental concerns, policy incentives, and technological progress have propelled growth. Simultaneously, supply-side innovations have reduced prices and increased availability, reinforcing the market expansion. Automakers appear poised to benefit from this trend if they adapt strategically to infrastructure needs and raw material sourcing. Overall, the EV market exemplifies a dynamic sector likely to continue its growth trajectory in the coming years, promising profitability for committed producers and opportunities for market expansion.

References

  • Alternative Fuels Data Center. (2023). Electric Vehicle Sales Data. U.S. Department of Energy. https://afdc.energy.gov/vehicles/electric_sales
  • BloombergNEF. (2023). Electric Vehicle Outlook 2023. Bloomberg New Energy Finance. https://about.bnef.com/electric-vehicle-outlook/
  • International Energy Agency. (2022). Global EV Outlook 2022. IEA Publications. https://www.iea.org/reports/global-ev-outlook-2022
  • U.S. Environmental Protection Agency. (2023). Effects of Electric Vehicles on Emissions. EPA. https://www.epa.gov/evs
  • Johnson, M. (2022). The Future of Electric Vehicles: Trends and Challenges. Journal of Sustainable Transportation, 16(3), 123-139.
  • Smith, L., & Lee, D. (2021). Technological Innovations and the EV Market. Renewable and Sustainable Energy Reviews, 135, 110234.
  • Green, P. (2020). Government Policies and Electric Vehicle Adoption. Policy Studies Journal, 48(4), 645-668.
  • Miller, R. (2019). Market Dynamics of Electric Vehicles: A Comparative Analysis. Transportation Research Part D, 69, 249-259.
  • European Environment Agency. (2021). Electric Vehicles and Urban Air Quality. EEA Report No. 12/2021. https://eea.europa.eu/publications
  • National Renewable Energy Laboratory. (2022). Battery Cost Reduction and Impact on EV Market. NREL Publications. https://www.nrel.gov/publications

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