Question:

What happened to the elasticity of demand for american cars when the japanese developed a strong auto industry

by Guest21498  |  earlier

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economics

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2 ANSWERS


  1. You can blame the agonized unions for this one for demanding outrageous wages & benifits.  This caused the auto producers to pass on the higher prices for their cars to the consumers.  Even though imported the Japanese cars are cheaper than the American made.  Although I must admit I think the US cars are made much better in some cases......


  2. It became stretched to emcompass the new source, being tired of being bullied by the old and offered something better cheaper(used to be).

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