New Microsoft Word Document - Supply and Demand In this...

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Supply and Demand In this paper I will discuss the factors that could cause changes in supply and demand of a new car because I had this experience in the past four months. I will discuss the substitutes and components that have a car. Also, I will explain how the necessity of a car impacts price elasticity. It is very important to consider some economic factors before making a purchase. There are some factors that could cause possible changes in supply and demand when buying a car such as the increase in the price of the components of a car, which will cause a decrease or increase in demand for cars. Another factor could be the combustible price because if the combustible price rises, demand for cars would drop a bit. I could mention the taxes as another factor that could cause changes in demand and supply. When people receive refund money from taxes, many use it to pay down debt, others will travel, but there are people waiting this money to change the car maybe for one more modern. Another factor that could adversely affect the demand and supply of a car would be criticism, and defects that can have a car such as when it disclosed in the news that some cars were having problems with the brakes and gas tank. In a case like this, people were afraid to buy that brand of car. When I decided to buy a new car I did it for all the bad experiences faced with my
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New Microsoft Word Document - Supply and Demand In this...

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