Luxurious Equilibrium

     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 point A to point B without it breaking down on me. I was also hoping to get good gas mileage. I drive a lot and it's getting too cold outside to be pumping gas. I found a 2013 BMW x3 which is a crossover and looks like a mom car. It keeps me safe in the winter and doesn't gulp down on gas. My supply and demand graph is based on the prices of a 2013 BMW, no particular style. The prices range from $12,000-$22,000. I found the prices on CarGurus. My estimates for how many cars are available are based in the treasure valley in Idaho. The cheaper a BMW is the more demand there will be for buying one. But the supply will decrease because dealerships want to keep them as a luxurious car. If everyone can afford it, then they lose their value. The equilibrium is at about 26, $14,000. Which would mean that about 26 people would want to purchase a BMW at $14,000 and there is enough supply for it. 



Works Cited

 CarGurus, 2018.  https://www.cargurus.com/Cars/inventorylisting/viewDetailsFilterViewInventoryListing.action?sourceContext=carGurusHomePageModel&entitySelectingHelper.selectedEntity=m3&zip=83642

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