2:18 1 5G

2:18 Back BMHT-0016-week 9. pdf Applicable VLO's for This Week's Case Study I I. Articulate various economic principles and their relationship to business. This Week's Detailed Case Study Information 5G The economic environment hos a profound effect on any type of business. Economic cycles. affect revenues. and profits. while product elasticities, affect pricing and demand. Other economic principles could also have substantial effects on businesses. This week you will help the company articulate various economic principles and their relationship to business You manage o car dealership. which speciabzes in selling brand new cars. and sometimes accepts trade-ins. The car dealershi stock is comprised of the tol'owin car types: V ehicle Type Van SUV Four-door sedan Sports cars Pick-up trucks Number Of Vehicles Most Of your sales are SUV Sales. and Sports Cars. These cors have high profit margins and that is why you keep stocking mainly SUVs and Sports Cars. Below is a table showing the overage prices of your inventory by type. Vehicle Type Van SUV Four, door sedan Sports cars Pick-up trucks Average price $60.oco $25 om 90.000 $4S.oco When you come to work in the morning the firs' thing you do is read the news. You like 'o informed and follow the most recent 'rends in consumer consumption patterns along with the economic news. Over the past few weeks. a lot o' news are coming up about the forth-coming recession and the economic dcvnturn_ You remember from your economic class that auto-industries do get affected by economic downturns. and right a lot ot experts agree that we are approaching the decline phase. which will lead to a recession. You're wondering what should be done, in order to maintain business as usual or worst case minimize the potential losses. So. you start working on the following: Classify the car inventory according to product type: "Normal good. Luxury good. inferior Draw the current aggregate demand/ supply curve for the auto industry and show what will happen to demand/supplv if there is an economic downturn. WIL PROJECT Lambton College WIL PROJECT Program Name: BMHT project code: CPL.5559.BMHT.0016.V2 O WEEK 9 INOfe: this should be a sketch in exce'. 'here is no need in collecting date. and performing statistical andvsis or forecasting) State the relationship between the economic cycle/ good type (Norrnal. Luxury. or Inferior). and the business. Recommend an action plan to the car dealership. Deliverables. Format and Marking Scheme for This Week's Case Study Evaluation Correct classification ot inventory according to: normal, inferior, and luxury goods (2%) Correct illustration of the demand/supplv curves and the shifts in demand/supply curves (1%) Illustrating the relationship between the car dealership business and the current and expected economic situation (1%) Identifying the most appropriate action plan to the car dealership (1%) Note: assume any missing intcrmation. Clearly state your assumptions in your submissions. Summarize your findings in a two-poge word document.