A factor that most directly affects the demand for automobiles is

A factor that most directly affects the demand for automobiles is

A. The cost of raw materials and natural resources.

B. The availability of workers in automobile factories.

C. The individual tastes and preferences of buyers.

D. A company’s ability to respond to buyers’ interest

Answer:- The correct option is C. The individual tastes and preferences of buyers.

Demand is a measure of how many units consumers are prepared and able to buy at different prices. In the case of automobiles, individual preferences are a critical factor in determining demand. Some key factors related to consumer tastes and preferences that affect automobile demand include:

Styling and design – The appearance of a car plays an essential role for many buyers. Manufacturers spend a lot of money on design in order to make their vehicles look attractive. There is a higher demand for models perceived as trendy or cool.

Features – The comfort, technological features and safety attributes offered determine demand. The features, such as leather seats, navigation systems and collision avoidance attract the consumers. New tech and safety model get more attention.

Brand image – The brand’s reputation and stature is important. Quality, prestige or performance brands see stronger demand even if price goes up. Lesser known brands or those with bad images hardly create demand in the market.

Such functional requirements, the level of seating capacity, fuel economy and power can help to determine demand for cars. Demand for cars increase when seen as being more efficient in meeting people’s needs.

Finally, consumers purchase according to how well automobiles meet their personal preferences desires and means. Autos makers take action by making cars that are in line with preferences. Thus, consumer preferences determine automobile demand.

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