Transcript Module –III Demand analysis

Gold recovers marginally as demand
rises mildly
6 Jul, 2008, 0149 hrs IST, PTI
MUMBAI: Gold prices recovered marginally on the bullion market here on
Saturday on mild demand from stockists. Silver, however, eased further
on lack of industrial demand.
Gold was steady in Europe on Friday as fears over rising inflation balanced
the effects of a strengthening dollar and slipping oil prices. Gold prices in
New York ended at $932.70/934.70 per ounce as against the last
weekend’s level of $927.20/928.20 per ounce. In London, gold was little
changed at $932.10/933.10 per ounce.
In the domestic market, standard gold (99.5 purity) inched up by Rs 25
per ten grams to Rs 13,000 from Rs 12,975 and pure gold (99.9 purity) also
edged up to Rs 13,060 from Rs 13,035. However, silver ready (.999
fineness) eased to Rs 25,065 per kilo from Rs 25,080.
Gold prices had tumbled on Friday after a long winning streak due to fresh
selling from stockists due to fall in global market. Selling pressure
gathered momentum after gold prices in New York declined as dollar
strengthened against the euro and reduced the demand for gold, a dealer
said.
Asia's exporters suffer as
global demand weakens
6 Jul, 2008
• HONG KONG: Cliff Sun is hurting. The 54-year-old chief executive
of Kin Hip Metal Plastics had spent much of the past year grappling
with rising labour and material costs in China and a strengthening
yuan. Now that the US consumer juggernaut is slowing, he's
throwing in the towel and relocating inland from coastal southern
China.
"If we don't cut margins or even take small losses these days,
we're just not able to get the same level of orders," said the
former chairman of the Hong Kong Exporters' Association. "We're
facing a bitter, cold winter ahead."
Sun and others that collectively make up Asia's mighty export
engine face a difficult second half with Asia's central banks now
ready to sacrifice growth to combat food- and oil-based inflation
and with Europe no longer taking up the slack amid downwardspiralling US consumption. The worst is yet to come.
Demand for aspirational bikes
likely to swell
5 Jul, 2008
• NEW DELHI: While there is no sign of iconic American superbike
Harley Davidson hitting India, the success of Yamaha’s twin
superbikes—MT01 and YZF R1, which sold a total of more than 80
units in the past five months—has prompted other bikemakers to
line up more products in this category.
Suzuki will launch its famed 1,340cc Hayabusa, GXR 1,000 and
Bandit 1,250 bikes in September while Honda will introduce its two
superbike models—CBR 1,000 and GLX 1,800—during the festive
season in October. Kawasaki is eyeing the market and plans to sell
its superbikes through Bajaj Auto’s network.
Yamaha had set an initial sales target of 50 bikes in 2008, but the
better than expected sales of its two debutantes has prompted the
company to look for other superbikes for the Indian market.
Yamaha sales head T Maeda said: “We have sold most of the bikes
in smaller cities. Demand for such niche bikes is rising as customers
come to know about the various models available. We are looking at
increasing our portfolio in this segment to cater to these super rich
customers.”
Demand and supply analysis
Prof. Rama Deshmukh
What is ‘demand’?
• Demand =Desire +ability+
willingness
• Importance of the ‘demand’ for
the manager
• HR
• Finance
• Marketing
• Operations
Types of demand
• Individual demand and market
demand
• Autonomous and derived demand
• Durable and non-durable goods
• Short term and long term
Demand function
Demand is a function of many relevant
variables.
Dx = f ( Px, Py, Yc, W, T &P, U , G, Taxes, E)
The variables in the bracket are Determinants
of demand/Factors influencing demand.
Factors affecting the
demand for the product
•
•
•
•
•
•
Related goods
Consumer income
Expectations
Demonstration effect
Demographic factors
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Law of demand
Other things remaining the same
demand varies inversely with price
i.e. demand curve slopes downward
from left to right ; more is demanded
at a lower price than at a higher
price.
Demand schedule
Suppose x=coffee, price =per cup
Px (in Rs)
Qdx
70
1
50
2
35
3
15
4
7
5
An imaginary demand
curve
A DEMAND CURVE MAY BE
Linear or Non –linear
Negative slope
Positive slope?
Increase and decrease in
demand
Expansion and
contraction in demand
Equilibrium
(Added) Value from the
point of view of the market
D
E
P
S
Q
• Consumer surplus
• Producer surplus
• Concept of
‘deadweight loss’
Price determination
• If the demand function for the pen
is Q= 150-5P and the supply function
is Q=10P, what will be the equilibrium
price and quantity?
• P=10, Q=100
Changes in the
equilibrium
• Shift in the demand and supply
curves
• Change in the slope of the demand
and supply curves