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In William Clavey's article titled "High Prices And Interest Rates On New Cars Mark The Return Of The Buyer's Market" he dove into the current climate of the new automotive sales market. In this article, he highlighted a recent shift in both supply and demand in the new car market. He noted that the cause of this shift was due to high car prices paired with high interest rates, both of which are having a major effect on the quantity demanded and, in turn, also affecting the supply on the market.

With new cars being at such high prices and interest rates holding strong, this has disrupted the market demand for new cars. This will result in the demand curve for new cars to shift left as less people will be looking to buy new cars at their high price. The high prices have always been paired with an increase in supply of new cars likely due to increased competition between manufacturers. As a result of a potential increased supply and decrease in demand the equilibrium quantity will decrease. This would result in a buyers market which is where buyers have more power to negotiate with car dealers to get a lower price on the car they are looking to buy.

Throughout this assignment i've learned about real world examples of what we have been discussing so far in this course. I have always been interested in cars and due to this assignment have a better understanding of the forces at play that dictates fair market prices for cars as well as other factors (supply, demand, etc.) that are at play in the car market.

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Supply is down and demand is up! Coffee beans consumers and producers are undergoing a supply crisis as of late as Vietnam, a major grower of coffee beans, has suffered sever droughts for the fourth year in a row! Just as one of the cheaper producers have taken a hurting, the demand curve in China is on the rise as consumers are developing a strong taste for coffee. Fear not coffee lovers, the other major producer of beans, Brazil, is ripe and ready to provide for the masses to meet an equilibrium in quantity, though we can predict a price hike as they also shift towards using a more premium arabica variety. Therefore, we will most likely see a rise away from the equilibrium price.

I feel that I could use what I learned in this week's teachings towards helping my wife's business numbers for the different products and prices that she set. She has been trying to find a good price point for certain baked goods in which customers will purchase her products at, but at the same time, she still wishes to be profitable. In addition, we notice that she tends to sell some products such as her mocha cheesecake brownie bites more than the Spanish bread she bakes. I would suggest to her to make more of the brownie bites since she sells out very quickly for those and possibly remove the Spanish bread from her menu. Since the demand for those is low, she lower the price instead if she still wishes to include them. Lot's of great ideas to discuss!.