StudentShare solutions
Triangle menu


Nobody downloaded yet

Extract of sample

This is the reason for fall in the price of palladium in the following months. As per the theory of economics, the price of a commodity increases when its demand increases in the market. Similarly, the price falls in the event of fall in the demand for the same. The same has happened in the case of Palladium. Though Mazda has not announced by when the new technology would be used, the market expected a downfall in the demand for the commodity if automobile industry adopts the new catalyst. Thus, the demand of palladium is changed due to change in non price factor, that is, technology. Therefore the demand curve shifts downwards with no change in supply. Subsequently the price will reduce to reach at a new equilibrium. This phenomenon can be explained using figure 1 below.
Let D1 be the existing demand curve of palladium. When the news of new technology came up, the demand curve shifted to D3. This means that the quantity of Palladium that is demanded by the industry is reduced and so the price also gets reduced to adjust to the change in quantity demanded. Same can also be seen in the case of supply curve figure 2.
(Webshells, 2010) When demand for palladium is reduced, there is an oversupply created in the market. Due to the oversupply the supply curve s0 is shifted to s2. Therefore the price comes down to adjust to the market.
Technological breakthroughs are very much important in automobile industry. Only technology adoption can help automobile companies to reduce the cost of production. Take the case of new innovation by Mazda. As per the technology, palladium usage can be reduced by 90%. Palladium being one of the most expensive metals in the world, the cost saved by the company by adopting this technology is huge. The savings in cost will help the companies to charge less for the cars and thus companies can introduce low cost cars in the market. Tata has done a ...Show more


“Mazda Motor Corporation has developed a world’s first catalyst for cars that uses single-nanotechnology to create a catalyst material structure which substantially reduces the amount of precious metals that are used, such as platinum and palladium.” (Mazda, 2007) The…
Author : nienowjoana
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Law case study (valid contract, car accident)
In the given case, on Monday, Eddie asked Adele for a quote on the price of wild boar piglets. This is not an offer but a mere inquiry. Simple queries for information do not amount to offers. Adele replied that the piglets would cost ?13,350 including delivery charges.
8 pages (2000 words) Essay
The aspects related to the ways of operations for a German car company in China
The report summarizes the aspects that a German car manufacturing company can face if it enters in the car market of China. It has been observed that China had faced several issues regarding exchange regime which can cause threat for a new company. The report describes the ways to deal with the exchange risk as well as the political risks the German car company can face during the operations of business.
15 pages (3750 words) Essay
Smart Car Case Study
This concept relieves heavy environmental pressure caused by present traffic, and also ensures greater individual mobility. The Smart City Coupe is a two-seater car that meets the needs of travelers to a large extent. The external structure and other features of this car address the mobility problems in urban areas as it is a safe and environment friendly car.
8 pages (2000 words) Essay
Toyota Case Study
The report will consider a number of options open to Toyota in the future in order to maintain and develop a competitive advantage. Alternative energy news gives a range of definitions of energy saving vehicles indicating that an energy saving vehicle has one of more of the following qualities. There are cars which run entirely from an electrical source.
7 pages (1750 words) Essay
Business Strategy Case Study
But from then on, spiraling oil prices resulted in a customer shift away from the big GM cars to more fuel-efficient small Japanese cars. Even though GM has successfully adopted Japanese lean manufacturing technology, thereby reducing defects per car, inventory holdings and costs, its competitors - the American, Japanese and European - have fared better.
10 pages (2500 words) Essay
Logistics management: Smart car case study analysis
Originally the brainchild of Nicolas Hayek, the creator of Swatch, the Swiss watch manufacturer, and Mercedes-Benz, the idea was to produce a small car that was as ecologically sound as possible. Designed for congested city centers, it was to be compact, lightweight and propelled by a small, low-powered engine.
20 pages (5000 words) Essay
Technology Studies Case Study
There is an intense significant that woodworm is present in the woodworks of the building. Wet and dry decays are also insight to have infested the woody material of the hotel. One of the most common tribulations that is being encountered in homes and other living places is moisture.
18 pages (4500 words) Essay
Case Study Assignment
A critical analysis of Daimler Chrysler's performance, using Porter's Five Forces, indicates that the company's deteriorating market performance is partially consequent to its failure to acknowledge the inherently global nature of the industry by globalizing its operations.
10 pages (2500 words) Essay
QUESTION 1; Even though the free market economy functions automatically, explain why in practice most countries adopted some form of the mixed economy in allocating resources. [700 words, 40 marks] QUESTION 2; CASE STUDY; CAR COSTS ARE CUT THROUGH NEW
Economic systems thus are composed of people, rules, institutions and relations and can be of many types. A free market system also known as the Laissez- fairre system is
6 pages (1500 words) Essay
Case Study - New Supervisor
Due to lack of accountability of actions and disciplined work culture, workers are de-motivated and absenteeism is frequent. Moreover, the previous manager had not delegated duties, as a result of which, much of the work had
2 pages (500 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation