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Goa Rajee Auto Pvt. Ltd. (Honda 1st Phase Dealer) was inaugurated on 13th July 2001.

Currently Goa Rajee provides facilities to the entire of South Goa.


They sell & service the whole range of the growing Honda base of vehicles.

Marketing / Sales Finance Human Resource Service / spare parts Front office / back office

Study of demand and supply of Activa and Dio at Goa Rajee, Nuvem branch

To analyze demand and supply of Activa and Dio at Goa Rajee. To see the application of these concepts.

METHODOLOGY
Primary source: Personal Interview

LIMITATION
No access to financial and statistical reports.

Law of demand states that there is a inverse relationship between price and quantity of a good demanded. This means demand curve slopes downward

Our study shows:


Law of demand doesnt work in the same way in Goa Rajee. Demand curve is positive.

Less substitutes. Financial institutions providing schemes. After sales service. Good quality spare parts. Loyal customers. Rise in income levels of consumers.

Law of supply states that there is a direct relationship between price and quantity of good supplied

As stated, law of supply is applicable in Goa Rajee.


Price has increased steadily from 2001 to 2011.

Improved engine i.e. E2

Financial schemes are working actively.

SHIFT IN DEMAND

MOVEMENT ALONG THE CURVE

It states, change in income, preference or prices of other goods and services leads to shift in demand.

It states, change in price of a good or service leads to change in quantity demanded.

In Goa Rajee, there has been a gradual increase in price which has led to gradual increase in quantity demanded.

INCREASE IN DEMAND

INCREASE IN SUPPLY

It states, higher equilibrium price and higher equilibrium quantity supplied. In Goa Rajee there has been higher demand which has led to a gradual rise in price and quantity supplied. The reasons for gradual rise in price are change in technology and price of other input factors.

It states, lower equilibrium price and higher equilibrium quantity supplied. This concept is not applicable for Goa Rajee as there has never been a case of higher supply.

DECREASE IN DEMAND

DECREASE IN SUPPLY

It states, lower demand lower price lower quantity exchanged. The above stated concept is not applicable to Goa Rajee.

It states, lower supply higher price lower quantity exchanged. In Goa Rajee there is lower supply and lower quantity exchanged but it does not lead to higher price.

WHAT IS MARKET EQUILIBRIUM?

APPLICATION IN GOA RAJEE

Quantity supplied = Quantity demanded No tendency for market price to change.

Quantity supplied < Quantity demanded. Its in the ratio of 1:3

Depends on one manufacturing plant (Gurgaon)

EXCESS DEMAND

EXCESS SUPPLY

Quantity demands > Quantity supplied at a prevailing price Leads to increase in price Not applicable to Goa Rajee

Quantity supplied > Quantity demanded at the prevailing price Leads to decrease in price

Presented By: Karen Dias Pranjali Jain Sumedha Kadam Sowmiya Santhanam Sharmad Kamat

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