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What factors are causing the decrease in the supply of used cars?
Wiki User
∙ 8y ago
(i) As cars have very elastic demand, this means that if price falls then automatically demand for cars will rise. And, if prise rises, demand for cars will fall.
(ii) If income rises, then demand for the product will rise as consumers' purchasing power will increase.
(iii) It also depends on fashion altogether with the taste of the product. Fashion will influence demand of cars. (brands, etc)
(iv) Government policies affect demand for cars, taxes and subsidies will either increase/decrease demand.
(v) Hire purchase facilities will increase demand for cars as it will facilitate customers when paying for the good.
I would add one more very crucial factor that influences the demand for cars is the current price of petrol/diesel and the respective mileage offered by the model.
Wiki User
∙ 12y ago
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If automobile workers went on strike causing a decreased supply of cars the supply curve would shift inward to the left and?
there would be an eventual upward movement along the demand curve, reestablishing equilibrium
If automobile workers went on strike causing a decreased supply of cars the supply curve would shift inward to the left and .?
there would be an eventual upward movement along the demand curve, reestablishing equilibrium
Supply and demand graph curve of hybrid cars?
supply and demand curve for hybrid vehicles
When analyzing the market for used cars graphically illustrate the impact the price of new cars falls would have on the demand and supply curve?
This depends on why price changes. I will assume price changes because of a decrease in cost of production. Supply: shifts right since producing a car is now cheaper at all levels of production. Demand: unchanged. New equilibrium: further right than before (higher quantity demanded and a lower price).
Why unemployment can be caused by a decrease of aggregate demand and supply?
Let's take a simpler approach here. Consider an economy with just one good in production: Cars. THe economy only produces cars and only employs people to produce cars. The demand for the car in that economy is 10.000 cars/year. And in order to produce 10.000 cars/ year, the economy has to employ 1000 people so 10 cars/person. For some weird reason, the demand for the cars decrease to 8000 cars/ year. Now, to produce 8000 cars, the economy only needs 800 people. Therefore, those 200 people are fired, creating unemployment. Aggregate demand works the same with the only different that it's the total demand of every single goods in an economy (cars,oils,house.... and thousands more). And so, if it falls, it needs less people to produce enough good to satisfy the demand => unemployment. Supply works in the same way if not simpler. Back to the car example, if for suddenly a factory blows up and forces the production to go down from 10.000 cars to 5.000 cars. Therefore, the economy employs 500 more employees than it needs to produce those cars. Thus, it creates unemployment where those 500 people are fired. In aggregate world, if the total (aggregate) supply falls, all those people who are on the "excess" level would be fired and become unemployed, thus generating unemployment rate.
What are the factors affecting supply of cars?
Demand
If automobile workers went on strike causing a decreased supply of cars the supply curve would shift inward to the left and?
there would be an eventual upward movement along the demand curve, reestablishing equilibrium
If automobile workers went on strike causing a decreased supply of cars the supply curve would shift inward to the left and .?
there would be an eventual upward movement along the demand curve, reestablishing equilibrium
Why do cars have mufflers?
to decrease exhaust noise
Who or what is causing air pollution?
cars
How will production of electric cars affect production of gasoline cars in the future?
Electric car's are constantly getting better. A lot of them are already more efficent then gasoline vehicles. As battery technology and public awareness of electric cars increase so will the production of electric vehicles causing a decrease in production of gasoline vehicles.
Are cars getting higher?
No Cars are actually getting lower causing more cars to break on speed bumps
How do you unlock cars on just cause?
Causing Chaos
What is causing pollution on the road?
Mainly exhaust from cars.
What would happen to the price of American cars if us raised the tariff on Japanese cars?
The price of American cars would stay the same. The price of Japanese cars would go up, causing more people to buy American cars. That's what tariffs are for. ... But, with American cars then being more affordable than Japanese cars, wouldn't demand increase on American cars and decrease on Japanese cars? The former would mean that US automakers start increasing pricing and the latter would mean that the Japanese automakers need to lower prices.
Supply and demand graph curve of hybrid cars?
supply and demand curve for hybrid vehicles
What factors might detract from creating cars with higher fuel efficiency or cars that use alternative energy sources?
There are many factors that may detract from manufacturing more fuel efficient cars. Resources and money are 2 such factors.
