MAIN FACTORS OR VARIABLES THAT

DETERMINE CONSUMERS’ DEMAND

 The cost of goods and services has changed over time.

 Due to the price changes, the Demand Curve shifts

accordingly.

 Depending on the product, the price can have a greater or

lesser impact
FACTORS AFFECTING DEMAND

 Income

 Credit eligibility..

 Quality.

 Substitutes.

 Complements.

 The economic cycle.

 Wealth-effect.
FACTORS THAT DETERMINE THE
QUANTITIES THAT FIRMS WILL
PRODUCE

 Savings in the manufacturing process

 Substitutes products' profitability

 Partners in the supply chain

 Weather
FACTORS THAT DETERMINE THE QUANTITIES
THAT FIRMS WILL PRODUCE

 Employees Welfare

 Progress in the field of technological innovation

 Reduced taxes are needed

 Subsidies
HOW THE MARKET FOR GOOD BEEN AFFECTED
DURING COVID IN HOUSEHOLD BEHAVIOR

 In during the COVID-19 pandemic, digital technology

adoption continues to rise.

 After the pandemic, many high-income families will

prefer to work from home

 The pandemic and lockdowns triggered this "home

nesting," which reversed a long-term trend of people

saving money and spending more time at home.

TO WHAT EXTENT HOW HAVE THESE SUPPLY
DISRUPTIONS AFFECTED THE MARKET FOR
THE GOOD

 According to David Leggett, an automotive analyst

with Global Data, the demand for vehicles in

Vietnam is currently decreasing.

 As the pandemic continues, it appears to be a major

setback for the auto industry's return to profitability.

 Toyota's profit for the first three months of the year

was $8 billion
SUBSTITUTION BY OTHER PRODUCTS

 It is difficult to find alternatives to Toyota's products in

some areas, such as the suburbs, where public

transportation is in short supply.

 These substitutes are usually less convenient than using

the products of firms like Toyota.

 The automobile industry creates the moderate threat of

substitution that Toyota must address by making its

products more accessible

ROLE OF GOVERNMENT AND ALTERNATIVE
MEASURES TO HELP CONSUMERS

• Government should introduce a price ceiling

• The cost of a Toyota varies greatly
depending on the model and line of the
vehicle
• Toyota employs a variety of pricing
strategies, including the following:
• Pricing based on the market's
requirements
• Pricing based on perceived value
PROMOTIONAL
ACTIVITIES OF TOYOTA
•Toyota engages in the following promotional activities:
• Selling goods or services on one's own initiative
• Advertising
• The practice of managing others' perceptions of
oneself
• public relations in support of an item or service
• Selling directly to the customer
CEILING PRICE OF TOYOTA:

 The ceiling price must be lower than the

equilibrium price in order for the measure

to be effective.

 An increase in demand is caused by a

decrease in supply; this change is known

as a price ceiling.

 When it comes to infrequent sales

promotion, special offers are used.

 Direct selling is also used on occasion by

the business for corporate clients.

 GOVERNMENT TAXES:

 When a tax is introduced in a market with an inelastic

supply Toyota dealers have no choice but to accept

lower prices for their business.

 Taxes do not greatly affect the equilibrium quantity.

 The tax burden in this case is on the sellers.

SOCIALLY DESIRABLE QUALITIES:

Toyota is committed to minimizing the

negative impact of its operations and
products on the environment.

Green technology is something the

company has been working on for a very
long time.

No single method can be used to create

environmentally friendly vehicles.
 CARBON TAX

 Governments may not want to use carbon

taxes for a variety of reasons, one of which is

the impact they would have on welfare

 The impact of a carbon tax on fossil fuels is

often regressive, harming the poor relative to

the rich

 Rising prices hurt the poor more than the

wealthy because they increase the cost of

their food, clothing, and other necessities

THANK YOU