How do the laws of supply and demand effect the price of cars in the U.S. or world market?

Question

How can events around the world effect these prices?

Answer 1

The Law of Supply and Demand is one of the most fundamental characteristic of economics.

You already know that more cars you buy, the higher the price it would go to, and if people dont like a model of car and dont buy it- companies are left with no choice but reduce its prices.

But, there is a lot more to this (and wait till end as I will answer you full question). Law of supply and demand of cars is not only factor that affects is price. There is a supplimantary product with the cars, and that is its fuel.

You will see lots of people buying Hybrid cars, which uses Electricity and Gasoline, together - to save on energy. These cars are costly compared to others, because owners of these cars would have to spend as much as half of what people using just gasoline cars. Now with rising prices of Fuel, people would opt for these cars and would increase the price of the car - as supply cant be met.

Second, factor is the society. In Angola, every rich man drives Aston Martin, so Ferrari has come out with some kind of offer in that country. Now you would never expect to get a deal on a brand new Ferrari living in the United States or Great Britain.

The third factor is, alternative / complementary products. In India, Thailand, Pakistan, etc people tend to use more and more mopeds / scooters etc, this reduced demand of cars, and you will see next year India is coming out with a family saloon car, worth a bit less than £1000 (buying brand new). So thats where prices get affected.

Now the fourth and the last factor I would include in Aux stage, where supply and demand are almost equal but the prestige comes in to the picture. This is for cars like Bentley, and Rollce Royce. They almost produce as much cars as there is demand, but the quality and prestige hypes up its value. Doesnt matter if you start buying many of them or people buying none of them, the price would hardly change.

Answer 2

Cost of material to be shipped to China goes up because the cost of fuel goes up and labor costs have risen, ending up in a shorter supply of product shipped out, creating a bigger demand for it, justifying an increase in retail cost.....and it starts over again, until another country is found that can be socially and politically exploited.

Answer 3

Ahhh, a question perfect for this category. Of course Christians and Atheist and everyone else in between could answer this question.

Answer 4

who knows, we produce so much, have so much, things should be like 10 cents for a movie, 100 dollars for a car.

Why use so much money? just compress it into computer code, 90.mny so you give someone 90.mny instead of say 90 dollars.. because dollars are.. too valuable.

Answer 5

Wrong section unless you wanna pray about it!!!

Answer 6

What religion is this?