Problem on decline of demand

The automakers slashed prices and gave ‘zero percent financing’ throughout the year 2001-2003 recession. An expected outcome was: (1) The decline in the demand for utilized cars. (2) enhanced maintenance of older cars by their owners. (3) Buyers purchasing less luxury option packages. (4) Raised rated of the highway fatalities.

Can someone please help me in finding out the accurate answer from the above options.

View Complete Question

Related Questions in Microeconomics

Q : Rate of return onto investment When the

When the rate of return on investment equals the interest rate, in that case investment will: (w) rise. (x) fall. (y) not change. (z) Any of the above is possible. Hey friends please give your opin

Q : Shift in the demand for loanable funds

Assume that this market is initially within equilibrium along with a supply of funds consequent to S0 and a demand for loanable funds consequent to I1. When the U.S. Department of the Treasury be

Q : Capital resources Select which of the

Select which of the following lists includes only capital resources (and therefore no labor or land resources)? 1) an ice arena; a professional hockey player; hockey uniforms. 2) the owner of a new startup firm; a chemistry lab; a researcher. 3) a hydroelectric dam; w

Q : Reform National Welfare Before the

Before the national welfare reform of 1996s, where Aid to Families with Dependent Children [AFDC]: (w) was the principal government program intended to alleviate poverty. (x) was exempt from any form of taxation. (y) generated pressur

Q : Positively sloped demand curve of

When your income is positively and closely tied to the price of a specific product, a raise in its price might cause: (1) The income effect which, in severe conditions, yields a positively sloped demand curve. (2) You to go bankrupt. (3) The powerful positive substitu

Q : Define opportunity cost Opportunity

Opportunity cost: The Opportunity cost refers to the cost of next best alternative inevitable.

Q : Accepting prevailing market price by

Unlike firms along with substantial market power, price takers: (w) control the prices of purchases or sales, but not their quality. (x) have no choice but to accept the prevailing market price. (y) adjust output and price to maximize profit. (z) are

Q : Find absolute value of the price

Two thousand four hundred students subscribed to cable TV services while they enrolled like freshmen. 800 of them students dropped the service while the price of cable rose by $25 to $35 per month. The absolute value of the price elasticity of demand

Q : Determine the equilibrium prises When

When both sellers and potential buyers suppose prices for rider lawn mowers to raise as summer approaches, in that case throughout March and April (in the short run), the equilibrium: (w) price falls but quantity changes are ambiguous. (x) price rises

Q : Income elasticity of demand Income

Income elasticity of demand: Income elasticity of demand is the degree of receptiveness of demand to the modification in income.

Discover Q & A

Leading Solution Library

Avail More Than 1431722 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1938936
Asked

3,689

Active Tutors

1431722

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment