“Signs of a possible recession typically rattle the cyclical auto industry, which normally gets hit hard in a downturn.” Does this imply that the income elasticity of de

“Signs of a possible recession typically rattle the cyclical auto industry, which normally gets hit hard in a downturn.” Does this imply that the income elasticity of demand for new automobiles during a recession is: (a) greater than +1.0; (b) between 0 and +1.0; (c) or less than 0? Briefly explain.
“… despite the cloudy economic outlook, the market dynamics that have fueled strong profits for dealers and auto makers over the past two years remain largely intact: Relatively scarce vehicle supply, and a backlog of consumers who are in the market for a car and willing to pay top dollar.” If the supply of automobiles is “relatively scarce” and there is a “backlog of consumers” for automobiles does this imply that there is shortage in the market for automobiles? Briefly explain.
Refer to the previous question. If the quantity demanded for automobiles is less than the quantity supplied, would this mean that automobiles are not scarce? Briefly explain.

Collepals.com Plagiarism Free Papers

Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.

Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS

Why Hire Collepals.com writers to do your paper?

Quality- We are experienced and have access to ample research materials.

We write plagiarism Free Content

Confidential- We never share or sell your personal information to third parties.

Support-Chat with us today! We are always waiting to answer all your questions.