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| | motorcar gross r so farue have been increase without fail all over the past(a) decades despite sharp rises in the monetary value of the liquid that powers them. The gross sales of traditional vehicles have been defying the most fundamental police forces of stintings and slip by to do so even with the appearance of alternative exposed fires and technologies. This is a topic that merits study to understand what is driving this ostensibly 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 mathematical explanations as to how this trend is being sustained despite its rebelliousness of scotch laws. The Rising Costs of Oil Firstly, one must 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 so 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 fossil oil demand canamong other factorsbe explained by the growing demand of developing countries for energy. This increasing demand in general comes from China, India and Indonesia whose populat ions alto bring inher account for more than ! a third of the universe of discourse population (Mokhatab, 2007) (Smil, 2003). Indeed, as these developing economies reach a certain 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: OrderEssay.net

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