ECO212 WK2 Help - In this paper, you will read about supply...

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In this paper, you will read about supply and demand. The good that I have experienced purchasing and have chosen to explore is purchasing a new car. I will explain the factors that affect the supply and demand of this good. I will explain factors that could cause possible changes in supply and demand. I will determine at least two substitutes there may be for the washing machine. I will determine at least two compliments there may be for the washing machine. I will also explain how the necessity of a new car impacts price elasticity. CAR Explain factors that could cause possible changes in supply and demand. 1. Time of year - at end of year people want to wait for next model year. At the beginning of the year, the current model is in more demand than last year’s model. 2. Price of gas - SUV (gas guzzlers) become less desirable when gas is high. 3. Fad - going green is chic so hybrids and flex fuel and smaller cars are desirable. 4. Taxes - governments can give lower taxes or rebates to stimulate purchase and purchase of specific types. Cars for Clunkers removed any cars from the market since they had to be destroyed and new cars had to be bought. 5. Politics xenophobia- makes purchase of foreign cars less desirable. Anti-Indian or Chinese may make sales of their cars fall in the US. 6. By American fads campaings by manufactures; union; patriot groups.
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ECO212 WK2 Help - In this paper, you will read about supply...

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