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IB Extended Essay 2013

“To what extent do the government policies in restricting consumption of automobiles affect the demand for automobiles in Beijing?”

Word Count: 3869

Candidate: CHEN, Kexin
Subject HL: Economics HL
Supervisor: Christine Zhang
School: Beijing Huijia Private school

Research question:
“To what extent do the government policies in restricting consumption of automobiles affect the demand for automobiles in Beijing?” Method of approaching investigation:
To make the determination of research, the investigation was undertaken through primary and secondary research during the process. Primary research has investigated the citizens who lived in Beijing to draw a survey diagram and clear the distribution for different choices. On Monday in Jan.21 2012, 100 people are chosen to do this questionnaire in shopping malls in Xi Dan in Beijing and in the Junjun Garden community. Ask them some non-price factors which affected demand for automobiles. To have a good statistic result, she interviewed with two mangers in Beijing Deiao 4s shop and BYD 4s shop to gain information of the model Audi A6 and BYD S6 With combination of consumers and sellers, it gives a wide data collection in conclusion. Secondary research included internet and read books. To read a number of newspapers with published news, when government made some polices about automobiles in 2011. Summary of conclusion:

With much data collections, it showed government restricting automobiles policies effected demand of automobiles largely. There are three main reasons to define the result. First, 31.7% people think that they don’t buy automobiles because of the restricting policies. Among all the non-price determinants, government policies stand for the most important poison. Second, it has been determined by the PED has been concluded into the inelastic which means given a change in price of automobiles will result proportionately smaller influence in demand of automobiles. This means automobiles price can’t influence lots on the demand. Third, expect government restricting policies, other non-price determinants took a smaller impact on demand of automobiles. Eventually, government restricting policies play crucial role to effect demand of automobiles. Word count(295)

Table of contents
Title page -------------------------------------------------------------------------------1 Abstract ---------------------------------------------------------------------------------2 Research question-------------------------------------------------------------------- 2 Method of approaching investigation----------------------------------------------- 2 Summary of conclusion---------------------------------------------------------------2 Introduction ----------------------------------------------------------------------------- 4 Introduction of government policies-------------------------------------------------5 Introduction of two 4s car shops ------------------------------------------------------6 Methodology --------------------------------------------------------------------------- 7 Data collection and analysis --------------------------------------------------------- 8 Price determinant --------------------------------------------------------------------8 Theory of demand -------------------------------------------------------------------- 8 PED------------------------------------------------------------------------------------ 10 Non-price determinants------------------------------------------------------------- 12 Conclusion------------------------------------------------------------------------------18 Limitation to the investigation-------------------------------------------------------18...
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