What are the factors affecting demand for cars?
(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.
Factors affecting demand include the good's own price, the price of related goods, personal disposable income, consumer tastes and preferences, consumer expectations about future prices and income, and the nature of the good. All of these factors work together to determine the buyer's demand curve. The market demand curve is the horizontal sum of individual buyers' demand curves. Aggregation introduces three additional non-price determinants of demand: the number of consumers; the distribution of tastes among…