Supply and Demand
Supply and Demand Paper
Raymarr Shivers
Course:XECO/212
May 08, 2012
Jim Teaque
Supply and Demand
New Car
Factors that could cause possible changes in supply and demand are when the income of the economy of the United States of America or anywhere else in the world falls the demand for a new car will fall as well because of there is no new jobs or the jobs that was once here are now leaving and know there is now uncertainty about the economy. Who will waste their hard earned money I dont think many will do that just for a new car. When it is rising so will the demand for automobiles because now people can afford to purchase. When the price of fuel rises, the demand for new cars as far as SUVs will fall a bit. Sometimes the price of another automobile will or can shift the demand for a new car. If the economy is moving in a good direction that means money is flowing and everyone that is working can afford new things like a brand new car of their choice. “Say that over a period of two years, the price of cars rises as the number of cars being purchased likewise rises.” The law of demand seems to be now violated in a sense because the rise of cars being bought should of all since the rise of price went up. Time of year, price of gas, bad news about a particular model you wanted, taxes, fad are all factors that can possibly make a change.
Substitutes could be public transportation, ride sharing, riding a bike, riding a motorcycle, or walking either way people will always find an alternative to get where they need to go, also a shared taxi cab can be used. Why should people spend unnecessary money when it can be saved? A year long bus pass can be purchased or catching the train to work is also a good option as well. Or just