Supply and Demand
XECO/ 212 University of Phoenix
There are many factors that should be considered before buying a new car; this decision should be based on in-depth consumer research prior to stepping foot onto a dealership lot. In today’s vehicle market you can expect to see varying interest rates, varied vehicle supply and depending on the economy, dealership promotions and gimmicks which all play a role in the decision making process for a new vehicle purchase. The vehicle sales market is very competitive; do not let the undertaking duty of purchasing a new vehicle become overwhelming. Instead, prepare yourself with ample consumer research and knowledge before you go new-car shopping. Most adults have heard the saying ‘Supply and Demand’. But, what is Supply and Demand? Supply and Demand can be defined as a monetary rise and drop of the cost of a good. When the price of a good goes up, the quantity of the good diminishes and reversed, when the price falls then the demand will rise. When applying Supply and Demand theories, in today’s economy, you can see the demand for new vehicles has decreased. Supply and Demand are two words that seem to be synonymous with the word competitive. In regards to a vehicle purchase, competitive markets are what keep good car dealerships in business because they have mastered the competitive technique to work with Supply and Demand. Essentially, Supply and Demand determines the vehicle prices. Research, of your local area, can help a buyer determine the local economies position as well as other factors that could cause variation in the Supply and Demand of new vehicles. When considering the purchase of a new vehicle, it is important that a buyer look at other factors which may shift the demand curve. Factors that may shift the demand curve will include: the cost of related goods, style, expectations, income, and the number of buyers. The cost of related goods, meaning a new vehicle,...
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