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The automotive industry is rapidly evolving, particularly with the rise of electric vehicles (EVs) and advanced driver-assistance systems. Cars equipped with the latest technology tend to have higher starting prices, as manufacturers invest heavily in research and development. However, as technology becomes more widespread, such as electric vehicle batteries with greater efficiency, production costs can decrease, potentially lowering prices in the long run.


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At the core of pricing for any product, including cars, lies the fundamental economic principle of supply and demand. When the demand for a particular model or brand skyrockets, prices often follow suit, especially if the supply is limited. This phenomenon was notably observed during the COVID-19 pandemic when vehicle production was severely disrupted. As consumers returned to the market with pent-up demand, the limited availability of certain models resulted in inflated prices, sometimes exceeding the manufacturer’s suggested retail price (MSRP).


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