Supply and Demand - As a younger adult, the largest...

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As a younger adult, the largest purchases that I have made are cars. My latest purchase of a vehicle was a Jeep Wrangler in February of 2009. There have been many factors that I have considered when making the purchase of a vehicle including price, reliability, safety, and mileage. The factors that help me decide which vehicle to buy are influenced by supply and demand. Vehicles have become a necessity for most individuals in today’s society. What used to be a luxury has now become a means for people to get to work, school, and handle everyday errands. The things that affect how affordable cars are include competition, popularity, change in demand, change in supply, and change in both. The law of demand says that when the price increases the quantity decreases. In relation, when the price decreases, the quantity increases. Popularity of a vehicle increases the demand which will increase the price. A change in demand will affect the price and its affordability. Weather is an example of a factor that affects demand. For example, not many people are going to be in the market for a convertible vehicle during the harsh winter. Likewise, more people purchase sport utility vehicles and other winter weather vehicles during the snow and ice season. The law of supply says that that quantity supplied rises when the price rises.
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This note was uploaded on 02/27/2011 for the course MKT 421 taught by Professor Unknown during the Spring '08 term at University of Phoenix.

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Supply and Demand - As a younger adult, the largest...

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