Buying a New Car

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Buying a New Car XECO/212 Principles of Economics April 1, 2012 Buying a new car is fun and exciting but there are many factors in today’s market that are affecting those who want to purchase a new car. Not only are fuel prices incredibly high and expected to go higher based on tensions in the Middle East, employment is looking up but many are still without jobs or enough income to purchase a new vehicle. There are a few car makers that understand those looking for an economic vehicle that gets great gas mileage. Some of the factors that could cause possible changes in the supply and demand of a new car are again unemployment. This affects demand more than anything. If you do not have income to pay for a new vehicle the…show more content…
If automakers adjust the price of their vehicles to down to entice more people to buy a new car demand may rise even with the ever rising price per gallon of gas. A new car for many may be a luxury item and not a necessity at this given time and if the prices of new cars rise you may see the demand drop. However; if people are still driving cars with poor MPG they may trade for an affordable fuel efficient model and the demand for these types of cars could increase and the price could rise marginally as well so that they were still considered affordable. RESOURCES: www.fueleconomy.gov www.scooterfocus.com/scooter_mpg.html
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