Analyze the changes in market demand and market supply for a commodity (a good or a service). In addition, analyze how the changes in demand and supply affected the market price and production of this commodity. To do so, address the key factors (determinants) that have caused the shift in demand and/or the shift in supply. Changes in Demand – 5 most important non-price determinants of demand are Preferences, Number of buyers, Incomes, Expectations, Price of related goods. Change in Supply – non-price determinants of supply are Technology, Number of Producers, Price of Inputs, Expectations, Price of Related Goods. The goal here is to provide an objective analysis of the forces that have caused this change to better understand the behavior of the market and to determine the potential growth or decline for this commodity. The commodity I choose is Online Shipping. Analyze to determine changes in the market demand, market supply, equilibrium quantity (output), and equilibrium price. The research needs to be structured with consistent and clear thoughts. It also needs to be supported by actual data. The results need to be based on solid facts. The conclusion and opinion need to be thorough and based on the findings and understanding of supply and demand determinants. There are 4 sections to this case study (Introduction, Data, Analysis, Conclusion). There must be 4 section headers Introduction o Describe the commodity and the market that commodity targets (geographic or demographic). o State when, how, and why the commodity has became popular or less popular. o State the factors (demand determinants and supply determinants) that have caused its supply and demand to change and how those changes affected the price. Basically, why has demand and supply for that commodity changed?
