Supply and Demand

Automotive Industry make outing and Demand Katharyn E. Moore Supply and Demand The automobile industry has certainly guard seen fluctuations in grant and withdraw, especially in the last decade. The economic turmoil of the United States has tho been one factor in tack and have of vehicles. This is evident with work and income of consumers, interest rates, gas prices and the consumers accept for more than efficient cars. The lease for more fuel-efficient transportation affixs as gas prices rise and the tote up for fuel-efficient cars also rises.Manufacturers leave behind increase the make out of fuel-efficient cars to meet the command. If the prices of these cars ar more than what the consumer is unstrained to give in, the demand testament decrease and inventory of these cars bequeath increase. A decrease in price of the fuel-efficient care will cause the demand to increase and the manufacturing business to increase supply at the price the consumer is willing to pay. Equilibrium is the supply and demand of fuel-efficient cars will meet at a price that the consumer is willing to pay and the price the manufacture will charge for the car (Colander, 2011).The resources undeniable for the industry whether it is employees, raw materials, financial and applied science affect supply and demand in the automotive industry. These resources are needed to facilitate the making of vehicles and their supply either abundant or scarce will affect the industry. The unavailability of steel in manufacturing of fabricated metal product decreases the ability to supply the framework for a vehicle will decrease (Gross output by Industry, 2010). The manufacturer will have to decrease the supply.The limited availability will increase prices of metal and decreases demand for the product at a high price. If the demand for cars is high, the manufacturer will have to pay the higher greet and forward that increase on to the consumer increasing the price of the car. The consumer may not want the higher cost car and demand for the car will decrease a factor in moving the supply and demand curves of cars. Alternatives in the automobile industry are ongoing as manufacturers are introducing more fuel-efficient cars as well as biofuel (e85) and electric cars.New technology and consumer preference of these substitute(a)s will affect the supply and demand of vehicles. Consumer preference to a more ecological friendly vehicle increases demand and encourages supply increases from the manufacturer. Consumers have the opportunity to help the environment and decrease the usage for gas when letting a vehicle. effort has added electric cars to their rental fleet along with hybrids and fuel-efficient vehicles (Finance News, 2011).The error in demand for these vehicles will change the demand curve of election vehicles. Consumers are the important factor in supply and demand in the automobile industry. Our decisions of a fuel-efficient vehicle and the price we are willing to pay for these vehicles influence the supply and demand. We have choices as consumers, and these choices influence competition, pricing, and demand of vehicles on tap(predicate) for purchase. The supplier will act accordingly to these demands and make available the supply of product the consumer wants.The demand for vehicles is dependent on pricing, new technology, fuel efficiency, alternative fuels and competition (Colander, 2011). These decisions will increase or decrease the supply and demand curves with these choices. With all of these and other factors the supply and demand curve will increase and decrease as the market changes with these influences. Supply and demand will incessantly be changing as we choose to purchase products and services that we need for our psychological and physiological needs. References Colander (2011). Introduction into Macroeconomics.Macroeconomics (7th Ed. ), Chapter Four, United States McGraw-Hill-Create. Finance News. (2011, Oc tober 27). Enterprise Rent-a-Car expands electric vehicle fleet. Retrieved October 30, 2011, from Yahoo. com website http//finance. yahoo. com Gross output by Industry. (2010, declination 14). Retrieved October 28, 2011, from Bureau of Economic Analysis website http//www. bea. gov U. S. International Trade in goods and services. (2011, October 13). Retrieved October 28, 2011, from U. S. count Bureau Economic Analysis News website http//www. bea. gov