Name two things that affect demand (2)
Case study: armoured vehicles in Brazil:
Although crime is statically on the decline in Brazil people
feel more fearful than ever and are in constant fear of armed robbery and from violent
gang crime.
A decade ago there were a handful of companies that sold or
outfitted armoured cars in Brazil, now that number is closer to 120. In 1998
1782 vehicles were sold compared to more than 7000 in 2008.
In 2008, the number of high net worth individuals in Brazil rose to 131,000, surpassing the number in Australia and Spain and taking Brazil to 10th on the world table of super-rich, the report said.
In 2008, the number of high net worth individuals in Brazil rose to 131,000, surpassing the number in Australia and Spain and taking Brazil to 10th on the world table of super-rich, the report said.
Draw a demand and supply curve and on it draw the change in demand for amoured cars that would be caused by a rapid decline in crime levels (4)
Explain what could cause an increase in supply of vehicle armour (4)
To what extent is demand for armoured vehicles in Brazil caused
by an increase in income (6)
2) An increase in supply could be caused by cheaper costs to factors of production. Which would reduce the amount of money spent on production, thus supply could increase.
ReplyDeleteThe technology of manufacturing armored vehicles developed further, coming up with new, stronger and faster methods to production of vehicles. Thus, increasing supply as the supply curve would shift to the right.