Case Study 1: Demand Analysis

You will demonstrate how the roles of different factors influence demand and affect market equilibrium.
A manager needs to accurately assess demand for efficient operations. If the manager underestimates that
demand, production, and inventory can either build up and/or workers will remain idle with no work to
perform. Conversely, if the manager overestimates demand, production, and inventory cannot meet the sales
thus forfeiting an opportunity to gain market share and/or the company will not be able to hire enough
workers causing the workers that do the work to become over-stressed. Either scenario can lead to poor
profitability.
Topic/Question – Analyze the demand for an aviation product (cargo, flights, military products) and discuss:
a. factors that influence demand
b. elasticity.
Choose your product or service from the aviation and aerospace industry and conduct a demand analysis. In
your demand analysis be sure to address the following:
1. Provide the necessary background information so the reader understands the product, market,
demographics, customers, producers, perceived value of the product or service, competitors (direct and
indirect), and market structure, elasticity of product or service.
2. Construct the demand function using multiple independent variables as a regression equation.
3. Discuss how the changes in different variables will influence equilibrium price and quantity.
4. Support your analysis with current examples illustrating 1-3.
5. Consult and cite at least two academic sources for your paper. Use current APA style format for in-text
citations and document all sources on the reference page. Please use Google Scholar for locating sources.