ECONOMIC PRINCIPLES

                          ECONOMIC PRINCIPLES

We’re going to address the motor vehicle industry. Motor vehicles are now a domestic requirement. While these things are protected by luxury goods, in the real economic situation, cars are becoming more or less the need of the citizens. The automobile industry mainly originated from Japan in the first 1950s, when Japan manufactured some of the coolest cars at meager prices. The goods of the Japanese factories were so durable that they quickly had become the target of the global market. A considerable number of people were workers in this industry all over the planet. For a long period, the car industry has been a valued source of salaries for a large number of employees. The vehicle industry has different sectors inside it, which is the production industry, which produces the models of the vehicles that have to be created, and then there is the manufacturing industry, which meets the needs of the selection of raw resources, integrating them to the construction industry (Menon, 2019). Then there is the advertising industry which meets the needs of the company’s promotional events on the marketplace, which promotes different advertising and deals which would improve the popularity of the brand new car among many of the people, and eventually, there is the dealer and the retailer who takes the automobiles from the producers and brings them to the street.

If we see the above picture, we can see the need for separate types of vehicles on the market. The S curve demonstrates the supply of cars on the road, the AD1 curve shows the quantity of luxury cars on the industry, the AD2 curve shows the quantity of strong-end vehicles on the market and the AD3 curve suggests the availability of small to mid-range cars on the market. The point at which these curves are of concern to the supply curve is the level at which the graphs are balanced. Hence, point P is the optimum point of luxury cars, it tells us that the market for luxury vehicles is lower compared to many other cars, and thus their availability is also lower. Point Q signifies the balance point of strong-end cars in the world, and that they are those with a standardized and advanced production and consumption function. Point R indicates the balance point of early-range small-priced vehicles, which are faced with high demand, and thus their supply must also be greater than that of other vehicle types. The results and quality of mid-range vehicles have historically been outstanding, as they are efficient. We are never out of demand because the general public is still looking forward to more inexpensive goods with some longevity.

In recent times, leading to the effective regulation of the automotive industry, it has also been noted that the costs of early-range cars have decreased tremendously. This has culminated in the middle class being able to afford these vehicles. Moreover, the high-range car marker faces fierce competition, and, in the course of lowering the prices, the quality of the cars is steadily reduced by vehicle manufacturers. Such emphasis on cost has already caused the loss of many people’s lives (Chandra, 2019). The Government should take strict steps to make sure that the price of the product produced is at the same level as the category in which it boasts. Therefore, the weirdest safety checks on vehicles will be carried out to guarantee that the different tests are carried out by the Drivers so that they do not cause severe problems in the case of an accident. Besides, automobile prices should also be subject to regulation, as individual manufacturers are breaching the automobile safety rule, even in the blower category of vehicles, to make them affordable. The Government will, therefore, keep a close watchful eye on the development and performance of the sector’s goods.

References

Chandra, A., & Garthwaite, C. (2019). Economic Principles for Medicare Reform. The ANNALS of the American Academy of Political and Social Science, 686(1), 63-92.

Menon, P. P., & Priya, V. (2019). Impact of Market Economic Principles on Workplace Anxiety and Stress. Indian Journal of Public Health Research & Development, 10(9), 145-150.

SAJNOSKI, K., & SAJNOSKI, A. (2019). MONEY BETWEEN ECONOMIC PRINCIPLES AND POLITICAL POWER. Journal of Sustainable Development, 9(22), 86-103.