Week 11 Course Paper – Harley Davidson-Microeconomics
Jason Norris
Rasmussen College

Author Note
This research is being submitted on September 13, 2012 for Mr. Rick D. Pretzsch G204/ECO2023 Section 01 Microeconomics course at Rasmussen College by Jason Norris

Week 11 Course Paper - Final Submission

Prepare a 3-4 page essay that summarizes how microeconomics affects your chosen company. Use your previous course paper assignments to assist you with this essay. Remember to use suggestions and/or comments that your instructor has provided you throughout the course. Be sure to cite your sources in APA format.

The purpose for this report is the microeconomic observation of Harley-Davidson Inc., a manufacturer of heavyweight …show more content…

Harley Davidson has been on a rollercoaster of supply and demand. For the past 25 years this American company has had a long strange trip. The journey of this motorcycle maker’s journey to almost bankrupt and back up to the pinnacle of American business iconography has been all about supply and demand. Coming out of the slumps created by outsourcing motor parts to American made and built the unbridle success has created new problems. They production was increased yet supply has lagged demand. This left many customers waiting for backorders. The imbalance between supply and demand has created a flourishing black market, with bikes selling for more than the suggested retail price and customers high on waiting lists selling their places to impatient buyers lower down. [ (Imperato, 1997) ]
On April 25, 2012 Bree Fowler of with the Associated Press reported Harley-Davidson Inc.’s that its first-quarter profit jumped 44 per cent, as improving economic conditions boosted U.S. sales of its famous motorcycles. Harley shares climbed $2.40, or 4.8 per cent, to $52.76 in late morning trading, after peaking at $53.03 earlier in the day. This is evidence that there is not just a demand for these metal highway horses but the supply is being met. With investees buying on the market in stocks the manufactures are being supplied the funds because people believe in the product, which results in more bikes leaving the showroom floor. Other motorcycle manufactures try to emulate