Labor Day Weekend: Car Sales Are Down But Prices Are High! Defying Economic Theory
#LaborDayWeekend In a #PerfectCompetitive #Capitalist #market such as the #US when #Demand is Low and #supply is low, one would expect #Prices to be low, Yet #CarSales Are Down Almost 20%, but #Prices Are Setting #Records. This would seem to defy economic theory of the relationship between demand and supply, where all things held constant “criteris paribus”, price should trend you or down depending on the dynamic of such relationship.
In economics, the relationship between the quantity of a commodity that producers wish to sell at various prices and the quantity that consumers wish to buy. It is the main model of price determination used in economic theory. The price of a commodity is determined by the interaction of supply and demand in a market. The resulting price is referred to as the equilibrium price and represents an agreement between producers and consumers of the good. In equilibrium the quantity of a good supplied by producers equals the quantity demanded by consumers.
But Nara Naughton of the Wall Street Journal publishes an article saying that Car shoppers hoping for Labor Day bargains may be in for a big surprise: This year, it seems, everything doesn’t have to go. she explains that dealers this year are unlikely to offer the kind of blowout discounts typical of the holiday weekend, when they often seek to clear out older inventory to make way for the incoming model year, analysts and dealers say. You can click on the link below to read the full article:
In economics, the relationship between the quantity of a commodity that producers wish to sell at various prices and the quantity that consumers wish to buy. It is the main model of price determination used in economic theory. The price of a commodity is determined by the interaction of supply and demand in a market. The resulting price is referred to as the equilibrium price and represents an agreement between producers and consumers of the good. In equilibrium the quantity of a good supplied by producers equals the quantity demanded by consumers.
But Nara Naughton of the Wall Street Journal publishes an article saying that Car shoppers hoping for Labor Day bargains may be in for a big surprise: This year, it seems, everything doesn’t have to go. she explains that dealers this year are unlikely to offer the kind of blowout discounts typical of the holiday weekend, when they often seek to clear out older inventory to make way for the incoming model year, analysts and dealers say. You can click on the link below to read the full article:
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