Suv or Car: Better Gas Mileage?

Gas Prices and early(a) Economic Factors on Demand for Vehicles Cory Irwin declination 15, 2011 working capital State University EconS 490 Phil Wandschneider Abstract Over the past decennium U.S. flatulency prices have been steadily increasing. Sport utility vehicle (S.U.V.) revenue gross sales have been suffering however and sales of small much fuel-efficient cars are now prospering. Individuals do not extremity to acquire a vehicle that is costly to operate and thereof image for alternatives. Although the price affix in gas may be the largest contributor to the changes in sales, there are an another(prenominal)(prenominal) economical factors that could be causing consumers demands to change. To analyze these factors, an empirical framework exhibit the relationship between the sales of these two types of vehicles and economic factors much(prenominal) as the price of gasoline, GDP, consumption, unemp loyment, and income. The model supports the economic assumption stating that the outgrowth in the price of gasoline has led to a decrease in the demand of SUVs and an increased demand for small more fuel-efficient vehicles. The model also provides information on what other factors may have an affect on consumer demand for vehicles. ring of Contents Introduction3 Literature4 possibility/Model.

4 Data and Methods.6 Empirics..7 Results8 close...11 References Cited12 Appendices, Tables, Figures13 Introduction The steady increase of gas prices over the last decade is starting to have an effect o! n consumers demands for vehicles. arouse efficiency is becoming one of the primary(prenominal) factors when purchasing a new car. As gas prices rise, the sales of...If you want to institute a full essay, order it on our website: BestEssayCheap.com

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