Car Prices

Car Prices

This paper analyzes the effects of opportunity costs, marginal principle, and reality principle on car price's effect on demand and supply in car industry. The automobile industry peaked around 1968. In that year, the city of Detroit, still the center of automobile manufacturing in the nation, reported an astonishingly low unemployment rate of 3.5 percent. Shortly thereafter, however, the industry faltered again, losing business to foreign imports with cheaper-model cars. Many auto factories also relocated overseas, where labor costs were lower.

Despite declines in auto manufacturing in the United States, African Americans continue to make up a large portion ...