This paper will discuss the demand and supply analysis for Ford SUVs and trucks. Especially larger SUVs and trucks. What is supply and demand analysis? It is “the study of how buyers and sellers interact to determine transaction prices and quantities.” (Supply and demand analysis: introduction, 2011). It can be hard to believe that sales of large SUVs and trucks are up while sales of all sedans are plummeting in every category. Five years ago, SUV and truck sales were at an all-time low, but with today's economy, low gas prices, low interest rates and rising average incomes, people are opting for larger vehicles. Ford is one of the manufacturers that will benefit from the new change in demand. Ford has chosen to no longer make sedans and only make SUVs and trucks. Ford will keep two sedans which are the Ford Focus and the Ford Mustang, their best sellers. Ford plans to introduce new SUVs and trucks to cover more market segments because consumers can never afford Ford's premium lines that cost $70-80,000. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay Less than five years ago, automakers were in a race to improve fuel economy. This was mainly due to high gas prices. From approximately 2011 through late 2014, through 2015, gasoline prices averaged above $3.50 per gallon and the high average was slightly above $4.00 per gallon. The chart above is taken from (Gas Price Charts, 2018). According to data from the U.S. Department of Transportation, the average American driver logs 13,474 miles behind the wheel each year. So if the American consumer had chosen a large SUV that got a combined average of 18 mpg and at $4 per gallon, it would have cost them $2,994. However, if the consumer were to purchase a car that got closer to 40 mpg, it would have cost them $1,347.4. This would have saved the consumer an average of $137 per month on gasoline alone, not to mention that small cars cost less. Gas was a big factor, but there were other factors like declining economic confidence and the stagnant, even falling, wage of the average American. Between 2010 and 2016, consumers spent less. The economic environment has changed and the economy has strengthened over the past two years. Gas prices are lower, with the current national average at $2.84. At current gas prices and with larger SUVs and trucks getting around 20 mpg, that would currently cost the consumer $1,913 in gas, a savings of a thousand dollars per year. Other factors leading consumers to spend more on cars are that Americans have more confidence in the economy and American wages are rising. According to USA Today, "Wages and benefits for American workers rose 2.6% last year [2017], the fastest 12-month pace since spring 2015." % in 2017, 2017). This means that American consumers have a little more money in their pockets and they no longer want the same cars and are willing to spend more to get more. Americans have always been more attracted to larger vehicles than other countries. Therefore, Ford made the change to focus more on its SUV lineup and truck lineup. Only two..