Blog Post 3

Intro: In this short passage, I will be continuing to talk about my Big Decision I made when I bought my Dodge Charger. In the previous post, I explained how demand and supply played a role when I bought my car. Now, I will be talking about the elasticity of demand and the elasticity of supply, as well as explaining how my car was a personal utility to me.

Paragraph 1: After having my car for a few months, I was really happy with my decision. It was something I worked hard for and was one of the many options I chose to buy. When buying a car, it is important to consider the elasticity of demand. The Charger was Elastic because the quantity demanded for these type of cars are greater than the change in price on them over the years. The change in price hasn't really changed much, and this is because Dodge doesn't want the customers to buy less of their products. That is why when I bought my car, this factor was another good option for me.

Paragraph 2: Next comes the Relative Elasticity of Supply, which is when small changes in price can cause large changes in quantity. Since my car didn't really have much changes in price, the changes in quantity weren't really affected. As I mentioned before, the change in price can really affect the customer's willingness to buy products, so Dodge didn't really mess with the change in price dramatically on the Charger models.

Paragraph 3:  Finally, there is Personal Utility to take into consideration when you buy a product. You have to ask yourself if you really need that product, and how much benefit will you get out of it. My Personal Utility for buying my car was that I simply needed something to get around with. I felt satisfied with my decision.

Conclusion: As I have stated before, changes in elasticity can easily cause shifts in demand and supply. These factors always have to be taken into consideration when buying or selling a product. That is the main reason why the Equilibrium price for the Dodge Charger was kept at a steady rate. If prices were increased, the demand was simply going to decrease. I didn't buy my car because I wanted one, but mainly because I needed one. Analyzing these aspects of demand and supply will certainly help me make more good decisions in the future when purchasing products.