plz, using supply and demand explain, urgent thx
2006-07-27 00:57:03 · 4 answers · asked by luizmui 1 in Business & Finance ➔ Advertising & Marketing
War disrupts the production and distribution of crude oil. Supply to the refineries is limited, thus there's less gas out there and they can raise the prices at the pump.
The Ford Falcon, mother to the Mustang but one ugly car in itself, would tend to have poor fuel economy compared to newer, more compact cars (but has a good deal more character). With gas prices rising, fewer people would want to spend the money to drive it, preferring more economical models. Thus the demand for the Falcon is reduced, and the seller would have a more difficult time getting a good price.
Limited access to crude oil = High gas prices
High gas prices = lower sales for larger cars
2006-07-27 01:05:39 · answer #1 · answered by Happy 4 · 2⤊ 1⤋
Easy. Demand and supply. When war breaks out in middle east. They affraid this might affect the supply of oil. As you know, Middle East country are one of the biggest oil producer in the world. If the world are not controlled like the war between hezbollah and israel; it might affect country like Iran. Us are accusing Iran supplying the weapons to Hezbollah. If the war link to iran then the oil supply will be disrupted. If supply disrupted, oil price increase. The fear of supply disrupted will cause demand of oil increase. Buying oil now and keep for the future. As at the same time the used Ford Falcon is dropping.. because it is complement product. If oil increase lesser ppl buy car... then demand reduce. it will affect demand for car.. and used car as well.. not only ford falcon i mean other cars as well..
2006-07-27 08:17:56 · answer #2 · answered by beckham2021 1 · 0⤊ 0⤋
Well said, the Ford Falcon consumes lot of fuel. Hence, with increase in petrol prices the demand for the vehicle further falls.
2006-07-27 08:04:03 · answer #3 · answered by Anonymous · 0⤊ 0⤋
the price of oil ie petrol is generally by the opec countries which being middle eastern in origin. if there is conflict in this area supply cannot be guarranteed due to this conflict as it costs more to transport out. as for the ford falcon that is because six and eight cylinder cars cost more to run hence their value declines
2006-07-27 08:03:36 · answer #4 · answered by jb1 4 · 0⤊ 0⤋