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Increase Car Price and Microeconomic Factors

In: Business and Management

Submitted By mohamad1983
Words 1703
Pages 7
Table of Contents

1.0 Article Summary 2 2.0 Application and Illustration 2 2.1 Concept 1 - Market Equilibrium 2 2.1.1 Analyze the concept 2 2.1.2 Illustrate the Issue 3 2.2 Concept 2 - Consumer surplus and producer surplus 4 2.2.1 Analyze the concept 4 2.2.2 Illustrate the Issue 4 2.3 Concept 3 - Monopolistic Competition 5 2.3.1 Analyze the concept 5 2.3.2 Illustrate the Issue 7 3.0 References 8

1.0 Article Summary
Based on the article, the car prices in Malaysia will face an increase in 2016, plus the gloomy monetary standpoint with the ringgit hitting its most minimal worth against the US dollar since the last 17 years ago currency crisis, a few individuals may need to delay their plan for buying a new car.
After implementation of the Goods and Services Tax (GST), the car area has been hit by moderate interest from customers. Presently with the spiraling ringgit, the industry is in an extreme position keeping costs low to get deals against the increasing expense of parts, imported from abroad.
Industry players proposed that those wanting to purchase cars, whether new or pre-owned, to do as such before the cost increment get to be inescapable because of the cash devaluation. In this circumstance, the business sector is still steady until further notice, however applying for advances will be more troublesome soon.
In the event that the cars dealing develop quickly, it implies the economy is great, yet now even houses are not offering admirably. These are markers, intelligent of the economy. For this situation the ascent in vehicle costs are unavoidable, and if not done, automobile organizations will endure misfortunes because of the ringgit. In the event that organizations did not raise their costs, they will endure misfortunes, and the devaluation of the ringgit truly gave an awful impact on the car products business.


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