Explain the factors influencing demand and supply of motor vehicles Assignment

Explain the factors influencing engage and supply of motor vehicles Explain what effect an amplify in the cost of petrol is likely to have on equilibrium price - Assignment interpreterif consumers income is reduced because demand for motor vehicles, especially higher priced vehicles, is reduced as a result the price and supply of vehicles flatten. Incidents such as strikes or a rise in the appeal of steel incur extra production be for manufacturers a rise in output costs means a fall in supply at a higher cost for the vehicles. On the other hand, if production costs are decreased and therefore motor vehicles are cheaper to produce then an increase in supply go out occur with a reduction in price.Supply and demand can be illustrated as curves on a graph and where the two curves merge is the equilibrium price and number the equilibrium sets the benchmark towards which the market incites and if demand and supply swing then the equilibrium correspondingly changes.An increase in petrol prices is an additional drain on consumers incomes particularly those who receive upset or middle incomes, thus higher petrol prices will affect demand for vehicles in that consumers will not be able to maintain them by way of affording petrol. Demand will therefore drop and the demand curve will move to the left while the curve representing supply will move to the right resulting in a lowering of the equilibrium price of the