You were an analyst of a consultancy firm and preparing a market analysis of hard-shell suitcase...

Transcribed Image Text:

You were an analyst of a consultancy firm and preparing a market analysis of hard-shell suitcase for your client. The following information is collected for the analysis. News Extract 1 Covid-19 brings global travel to a standstill "The near-complete halt in travel and tourism worldwide has adversely affected the group's performance in the first quarter of 2020, and is expected to continue to impact our business." said Kyle Gendreau, chief executive officer of Samsonite International (modified from: https://www.scmp.com/business/companies/article/3084507/luggage- giant-samsonites-suffers-first-quarter-loss-us787) News Extract 2 Acrylonitrile Butadiene Styrene (ABS) is the main materials used to manufacture hard-shell suitcase. Thus, you refer to the following news extract. Cost Lowered, Inventory Rose, China ABS Market was in Bad Situation The domestic ABS market recorded price decreased to a certain extent. The mainstream offer price of general ABS was about 15,750 yuan /ton, down 18.18% from the beginning of December, 2020. (modified from: http://www.sunsirs.com/uk/detail_news-4044.html and with modification) Question 1 Considered the information of both News 1 and News 2, your analysis shows there is a drop in quantity sold in the hard-shell suitcase market. Draw one demand-and-supply diagram to illustrate the situation. No explanation is required. You were an analyst of a consultancy firm and preparing a market analysis of hard-shell suitcase for your client. The following information is collected for the analysis. News Extract 1 Covid-19 brings global travel to a standstill "The near-complete halt in travel and tourism worldwide has adversely affected the group's performance in the first quarter of 2020, and is expected to continue to impact our business." said Kyle Gendreau, chief executive officer of Samsonite International (modified from: https://www.scmp.com/business/companies/article/3084507/luggage- giant-samsonites-suffers-first-quarter-loss-us787) News Extract 2 Acrylonitrile Butadiene Styrene (ABS) is the main materials used to manufacture hard-shell suitcase. Thus, you refer to the following news extract. Cost Lowered, Inventory Rose, China ABS Market was in Bad Situation The domestic ABS market recorded price decreased to a certain extent. The mainstream offer price of general ABS was about 15,750 yuan /ton, down 18.18% from the beginning of December, 2020. (modified from: http://www.sunsirs.com/uk/detail_news-4044.html and with modification) Question 1 Considered the information of both News 1 and News 2, your analysis shows there is a drop in quantity sold in the hard-shell suitcase market. Draw one demand-and-supply diagram to illustrate the situation. No explanation is required.

Answer rating: 100% (QA)

1 Demand Curve The demand for hardshell suitcases has decreased due to the global travel restriction... View the full answer