Paper on Elasticity

Company: Toyota Motor (TM, $76.47) Industry: Automobiles Manufacturing Toyota Motor (NYSE: TM) is the worlds largest car maker with over 248 billion dollars in revenues for fiscal 2010. Toyotas sales atomic number 18 concentrated in Japan and North America unless develop seen rapid growth in Asia and South America. Toyota sells its travels chthonian three brands namely Toyota, Lexus and Scion. Toyota has dominated market for the past 5 years in the area of hybrid vehicle with its Prius and is fore in the race for high mpg cars offered by manufacturers. command: Demand is increasing as high than average gas scathes are making fuel efficient reliable Toyota cars a more(prenominal) lucrative purchase. Demand curve shift to right as the customers are giving high preference to fuel cogency and reliability to keep barning cost down in the declining economy. impart: Toyota cars production was adversely affected temporarily imputable to natural causes such as Japan earthquake and Thailand flood. Toyota has managed to affix its supply to recover production loss and be profitable. Supply curve shifts to right due to Toyotas strategy to annex production of low price popular models more than higher priced niche market models.

Price duck soup: Industry Elasticity: On the industry level, price is inelastic in the short- status; there are a number of Japanese automobile makers as well as the big three. A atomic change in price would not affect the assume for a particular automaker. Tighter government regulations on fuel competency and environmental impact as well as consumers hunger for better features are keeping fierce competitor for automakers. This makes demand elastic in a longer run as automakers search for new ideas to survive their long term existence. Own Price Elasticity of Demand: Toyotas price is inelastic in the short-run. A small change in price would not affect the demand for Toyota cars as consumers have following for value for price package that Toyota offers. If the price... If you want to fall a full essay, order it on our website: Orderessay

If you want to get a full essay, wisit our page: write my essay .