Cars Are Lasting Longer

Essay

Cars are lasting longer.The expected number of miles traveled over a vehicle's life has risen to 180,000 miles in 2001 from 128,000 in 1977.Using supply and demand,predict how the increased longevity of cars will affect the price and quantity of new cars sold in the US.[HINT: Plot the shifts in yearly demand and supply for new cars in the US; an increase in longevity means that the supply of used cars increases.Since used cars are a substitute for new cars,show what happens to the demand for new cars.]