Problem: Speedy delivery is a package carrier which serves the Midwest It specializes in the delivery of auto parts to independent auto repair shops. It competes against very large firms like FedEx, UPS, and US Postal. The demand for the firm's services has been increasing as more consumers keep their cars longer and have them fixed rather than trade them in for new cars. However recent increases in gasoline prices have increased costs for the firm.
Q1. What supply and demand shifts would say are occurring?
Q2. What would happen to their demand curve if one of its competitors lowered their prices?
Q3. If you were ask to forecast future demand for this firm, how would you set up a forecasting model?