Current Event 1 Paper
Harvey to Impact Car Sales
Current Event One
Amanda Rayner
Baker College
September 3, 2017
Harvey to Impact Car Sales
Introduction
Hurricane Harvey has increased the demand of multiple goods and services. Fox Business issued an article written by Matthew Rocco, that details the impact on car sales. In this article Rocco discusses not only the state of Texas’ impact on car sales but the impact Hurricane Harvey will have on these sales as well. Supply and Demand is expected to be affected by the causes of this natural disaster.
Summary
Hurricane Harvey was a category four storm that hit the coast of Texas causing unbelievable amounts of damage. The state of Texas has suffered almost $30 billion in car and home damages alone which contributes to an estimated total of $50 billion in damages. (Rocco, M. (2017.) Among the damage, it’s been calculated that 300,000 to …show more content…
The Demand Curve normally slopes downward because the lower the price of a good, the higher the demand for a good. Whereas with the Supply Curve, the more expensive it is to supply a good, the lower demand the supplier is willing to supply, but the more expensive list price of a good, the supplier is willing to supply more of the good. In this case with Hurricane Harvey because consumers are going to be in a high demand for cars, they are going to be willing to spend more for vehicles because it has now become a necessity for the consumer. In this example, the change of consumers drives the demand higher. In contrast, the demand of supply is higher because manufacturers know they can get away with charging more for the vehicles, so in conjunction with being able to charge more, they are willing to produce a higher quantity of vehicles. Since both supply and demand encounter an increase in demand the demand and supply shift
Harvey to Impact Car Sales
Current Event One
Amanda Rayner
Baker College
September 3, 2017
Harvey to Impact Car Sales
Introduction
Hurricane Harvey has increased the demand of multiple goods and services. Fox Business issued an article written by Matthew Rocco, that details the impact on car sales. In this article Rocco discusses not only the state of Texas’ impact on car sales but the impact Hurricane Harvey will have on these sales as well. Supply and Demand is expected to be affected by the causes of this natural disaster.
Summary
Hurricane Harvey was a category four storm that hit the coast of Texas causing unbelievable amounts of damage. The state of Texas has suffered almost $30 billion in car and home damages alone which contributes to an estimated total of $50 billion in damages. (Rocco, M. (2017.) Among the damage, it’s been calculated that 300,000 to …show more content…
The Demand Curve normally slopes downward because the lower the price of a good, the higher the demand for a good. Whereas with the Supply Curve, the more expensive it is to supply a good, the lower demand the supplier is willing to supply, but the more expensive list price of a good, the supplier is willing to supply more of the good. In this case with Hurricane Harvey because consumers are going to be in a high demand for cars, they are going to be willing to spend more for vehicles because it has now become a necessity for the consumer. In this example, the change of consumers drives the demand higher. In contrast, the demand of supply is higher because manufacturers know they can get away with charging more for the vehicles, so in conjunction with being able to charge more, they are willing to produce a higher quantity of vehicles. Since both supply and demand encounter an increase in demand the demand and supply shift