▲ 207 r/economy
Why aren’t car prices falling?
Supply and demand determining price is a very important doctrine of modern economics. Something that is taught in the first day of econ 101.
Yet this year has given us a counter example. Car sales have fallen by as much as 7% compared to last year. Supply is up and demand is down. Even so, cars are only going up in price rather than becoming cheaper.
Why is this?
u/Kronzypantz — 4 days ago