A big supplier of used cars is rental car companies, who sell their rental cars after...
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A big supplier of used cars is rental car companies, who sell their rental cars after they're too used to rent out but are still good. Rental cars are not a substitute or complement for used cars on the demand side. Due to huge increases in demand for rentals, rental car companies decide to hold on to their stock a little while longer, and continue renting out cars that are a little more run down rather than selling them as used. What effect will this price increase have on the demand curve for used cars? A big supplier of used cars is rental car companies, who sell their rental cars after they're too used to rent out but are still good. Rental cars are not a substitute or complement for used cars on the demand side. Due to huge increases in demand for rentals, rental car companies decide to hold on to their stock a little while longer, and continue renting out cars that are a little more run down rather than selling them as used. What effect will this price increase have on the demand curve for used cars?
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The decision of rental car companies to hold onto their stock of used cars longer and continue renti... View the full answer
Related Book For
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
Posted Date:
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