Economics

Who has better cars? Audi or BMW? Porsche or Cadillac? Are you only buying because of the brand name and not paying attention to the actual product? There can be so much competition depending on the car. For BMW, I would say their biggest competitors are Audi, Mercedes, and Cadillac. Therefore, the market type for BMW would be an oligopoly. If a consumer isn’t satisfied with a car from BMW, they can get a substitute from their competitor. Of course, the car is going to be different, but slightly the same. There aren’t many manufacturers focusing on luxury cars. In fact, Cadillac is going to discontinue some of their cars. They are going to release something that fits more with today’s needs.           After doing some more research on how much manufacturers spend on making a car, I found some graphs.       For the first graph, from what I read, I do believe this is based on making cars in the US. The materials i...

Would you prefer paying $63 or $35 for a pair of shoes? The obvious answer would be $35. Working in retail, I have witnessed how prices affect the consumer. Before working with shoes, I used to work at a clothing store. Customers would often say how they would wait until we had a sale to purchase some items. The same goes to working with shoes. Even if a small discount of 10% is applied, the consumer makes the purchase. For relative elasticity of demand, I believe this makes shoes have a slightly higher elasticity. A small change in price causes a change in demand. For relative elasticity of supply for shoes, it has a lower elasticity. Producers keep on selling despite if consumers buy at a lower price. Because there will always be other consumers who will pay no matter the price.   Because there is so much competition in the automobile world, I would say that relative elasticity of supply and demand for cars can be slightly elastic. There are so many cars to choose from. Produ...

     Is it worth it buying a luxury car? Knowing that everything you buy for it is going to be triple the price? Gas, tires, windshields, insurance, even the car wash has to be premium.      There are many reasons that can influence a shift in the supply and demand curve of a car. Of course, the price point is a major reason why someone would want to purchase a car. No one in their right mind would want to go broke over a large purchase. A person's necessities and environment is a huge factor as well. People from California stay away from trucks. Californians get stuck in traffic for most of their day and trucks waste a lot of gas. People in Idaho though, get snow and we need a truck that will keep us safe and won't be sliding everywhere. Having a preference can also keep someone from buying a car. For example, my dad won't look at a car if it doesn't have wooden interior. For myself, I was looking for a car that was an AWD and would just get me from po...