Auto Sales

| Auto Sales| Managerial Economics | Section 4 | Group 2| | Cory Friedman (260479115) Oren Nahoum (260478679) Basir Naqvi (260426724)Michael Nelson (260479757) Alexis Tremblay (260480210)Submitted on| 9/28/2011| | cable car gross r neverthelessue have been change magnitude without fail all oer the past(a) decades despite sharp rises in the damage of the liquid that powers them. The sales of traditional vehicles have been defying the most fundamental practice of laws of stintings and slip by to do so even with the appearance of alternative circularize fires and technologies. This is a topic that merits study to understand what is driving this on the face of it unthinkable trend of inelasticity. Throughout this paper, the sales of cars and trucks with respect to the price of fuel will be analyzed along with contingent explanations as to how this trend is being sustained despite its defiance of stinting laws. The Rising Costs of Oil Firstly, one mu stiness look at the issue of increasing flatulency prices from an economic perspective to let out understand the mechanisms influencing gas prices. maven way of predicting future gas prices is to look at the law of supply and deal. The law takes into studyancy both the petition and the supply and wherefore approximates their impact on prices.

On the one hand, we have demand, which even though it has already reached highs never imagined before, is constantly increasing (Miller et al., 2005). The increasing oil colour demand canamong other factorsbe explained by the growing demand of developing countries for energy. This increasing d emand in general comes from China, India an! d Indonesia whose populations alto hitchher account for more than a third of the earth population (Mokhatab, 2007) (Smil, 2003). Indeed, as these developing economies reach a authentic economic status, their demand for goods such as automobiles [rises], which leads to increased oil consumption (Sill, 2007). On the other hand there is supply, which, over the coming years, is indentured to stabilize or, if a worst-case...If you want to get a rich essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay