ECS1601 Assignment 7 (COMPLETE ANSWERS) 2024 - DUE 29 October 2024
ECS1601 Assignment 7 (COMPLETE ANSWERS) 2024 - DUE 29 October 2024 - Course Economics IB (ECS1601)
ECS1601 Assignment 7 (COMPLETE ANSWERS) 2024 - DUE 29 October 2024; 100% TRUSTED Complete, trusted solutions and explanations.Ensure your success with us...
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E
, CS1501 Assignment 5 (COMPLETE ANSWERS) 2024 (65455
2) - DUE 22 July 2024 ; 10 0%
Question 1 (12 marks) Maximum word count: 100 words Giant, the world’s
leading brand of high-quality bicycles and cycling gear, announced that their
pre-tax profit has decreased by almost 50% while their sales were down by
approximately 16%. Watch the following excerpt from The Wild Ones Podcast
Ep.41produced by Cade Media (attached below) and answer the following
questions. (i) Which of the presenters best describes the market condition that
Giant Bicycles faces and explain why you agree with him or her? (ii) Draw a
diagram of the bicycle market that illustrates the market conditions discussed
in the podcast. (iii) Explain the adjustment process to the new equilibrium
position in the bicycle market.
(i) The presenter who best describes the market condition that
Giant Bicycles faces is the one who believes that the decrease in
profit and sales is due to increased competition and changing
consumer preferences. This is evident from the discussion on the
podcast where they mention that other brands are offering similar
products at lower prices, which has led to a decrease in Giant’s
market share.
(ii) The adjustment process to the new equilibrium position in the
bicycle market would involve Giant Bicycles reducing its prices
and increasing its production to meet the decreased demand.
This would help them regain market share and compete more
effectively with other brands in the market.
Based on the podcast, the presenter who best describes the market
condition faced by Giant Bicycles is Jane. She attributes the decline in
profit and sales to a decrease in consumer demand, impacted by
economic uncertainty and rising living costs, which I agree with because
it aligns with observed market trends where discretionary spending
decreases during economic downturns.
(ii) Diagram of the Bicycle Market:
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