In Purchasing an Automobile, There Are a Number of Variables

question 117

Essay

In purchasing an automobile, there are a number of variables to consider.The classification of the
car as a subcompact, compact, standard, or luxury size is an example of a _______ variable.

---

Definitions:

External Costs

Costs of a transaction or activity that affect parties who are not directly involved in it, such as pollution affecting the wider community.

Law of Demand

The principle that, all else being equal, an increase in the price of a good will decrease the quantity demanded, and a decrease in price will increase the quantity demanded.

Income Taxes

Taxes levied by governments on individual or corporate income.

Car Rental

A service that allows customers to borrow a vehicle for a certain period of time in exchange for a fee.