ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Microeconomic
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Macroeconomic
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Either A or B
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None of the above
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Detailed explanation-1: -Demand for a new car is most likely be elastic as the purchase of new car is dependent on several factors and it can be delayed. The demand for a particular model of car is in turn highly elastic because of the presence of many substitutes.
Detailed explanation-2: -The demand for a specific model automobile would likely be highly elastic, because there are so many substitutes.
Detailed explanation-3: -Elasticity of demand for sports cars can be considered as elastic. Besides sports cars, there is many cheaper cars that can be bought by consumers. This cars are very expensive, so they take a large proportion in consumer’s income.
Detailed explanation-4: -a. Interest Rates. Lower interest rates ensure easy automobile financing; thus, providing higher sales. b. Disposable Income. c. Inflation. d. Gross Domestic Product. e. Exchange Rates. f. Unemployment Rate. g. Changing Consumer Trends. h. Demographic Shifts. More items •15-Feb-2021