Supply and Demand in the Global Automotive Industry Essay

Supply and Demand in the Global Automotive Industry - canvas ExampleAccording to the report findings the greatest machinery that has been behind the progression of the automotive fabrication are the principals of rescue known as demand and supply. The law of supply states that keeping all some other factors constant, the more the expense of a particular product goes up the more the quantity of that particular product is supplied. On the other hand, the law of demand also provides that keeping all factors the same, when the price is high the demand for the product bequeath be great. Therefore, the automotive industry has survived on these two principles to sustain itself in the market. It has always been about the tone of the cars manufactured and the prices about the market and customers.As the paper stresses economic ways, the global market, has been enjoying a relatively static growth characterized by profits, and sales had improved to prerecession levels in countries. A su bstantial ambiguity concerning the future of the industry is still an issue. The European market looked much weaker around 2008, as it was just recovering from a six-year depression. vulturous competition within the fluctuating market have risen customers expectations, consumers have become demanding and have increase on their preferences . Market fluctuation is caused by mobile clients earnings that is to say, customers earnings being seasonal. It affects the producers in a way that they cannot predict the size of the market and therefore, cannot be sure of the quantity to produce.