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ECS1501 Assignment 5 (COMPLETE ANSWERS) 2024 (654552) - DUE 22 July 2024 ; 100% TRUSTED Complete, trusted solutions and explanations. R45,37   Add to cart

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ECS1501 Assignment 5 (COMPLETE ANSWERS) 2024 (654552) - DUE 22 July 2024 ; 100% TRUSTED Complete, trusted solutions and explanations.

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ECS1501 Assignment 5 (COMPLETE ANSWERS) 2024 (654552) - DUE 22 July 2024 ; 100% TRUSTED Complete, trusted solutions and explanations.

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  • July 22, 2024
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  • 2023/2024
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ECS1501
ECS1501
Assignment 5
(COMPLETE
ANSWERS) 2024
(654552) - DUE 22
July 2024 ; 100%
TRUSTED
Complete, trusted
solutions and
explanations

, ECS1501 Assignment 5 (COMPLETE ANSWERS) 2024 (654552) -
DUE 22 July 2024 ; 100% TRUSTED Complete, trusted solutions
and explanations.

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.

Market Condition Analysis of Giant Bicycles

(i) Presenter Analysis
The presenter who best describes the market condition that Giant Bicycles
faces is likely the one who discusses the impact of economic downturns on
consumer spending and shifts in demand. I agree with this perspective
because a nearly 50% decrease in pre-tax profit alongside a 16% drop in
sales suggests that consumers are either prioritizing essential purchases or
are unable to afford luxury items like high-quality bicycles. This indicates a
contraction in demand, possibly due to broader economic challenges such
as inflation or reduced disposable income.

(ii) Bicycle Market Diagram
To illustrate the market conditions discussed, we can draw a simple supply
and demand graph:

Price

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