Outline of Economic

In: Business and Management

Submitted By madready76
Words 770
Pages 4
Supply and Demand Paper
Monique Clement
XECO/212
Frederick Runge

When you are thinking about buying a new car there are some many things to think about including supply and demand. Understanding how supply and demand works can help you when it comes to purchasing a new car. You have to think about what make, model and year because those things will help you with elasticity and complements. The demand for a Bugatti is extremely low because this vehicle is unaffordable for most but the supply would be high because they only make a certain number of these cars per year and if you have the money you may want to sport this very fabulous vehicle.
A non-price factor that causes possible change supply and demand would be safety. Safety is a big concern to me when I am going to purchase a new car. I am looking for a great safety rating because I need a car that will protect me and children in case of an accident. Safety should be key for everyone when they are thinking about purchasing a new car. I like to do my research before stepping into a dealership. I also have to consider would safety be better on an SUV or car. Research is key to getting a safe vehicle. I remember when Kia car came out the safety rating was horrible. The cars were made cheap and it definitely showed. From 1997 to 2001 the Kia vehicles had a lot of engine and transmission problems so there was no demand for those vehicles because no one wanted to invest in a vehicle that would bring them problems.
Two substitutes for a car are to get a motorcycle or no car at all and depend on public transportation (bus and train pass), or sharing a ride with a friend or family. The thing about substitutes is that they are substitutes for what you want and so with that you have to decide if you can live with or without a new car. Having a family it is very hard to not to have a vehicle because…...

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