Question

What information would you need to estimate the demand function for autonomous vehicles (self-driving / self-driving)? (You do not need to estimate the demand function, but it is expected that (1) list variables that would determine the demand for this type of vehicle, (2) explain whether demand would increase or decrease in the face of a change in each of these variables and (3) identify how you would measure those variables.

Answer 1

Ans: we need some of the particular information about the product as well as its demand in the market. so overall we require the consumer demand and producer supply to estimate the demand function for an automobile. there are so many other attributes that are there along with the price. so these are the determinant for the demand of the self-driving cars.

Now we can list out the variables which will affect the demand and supply of this type of self-driving vehicle.

1. price

2. No. of another car.

3. milage

4. type of driving/the category of driver.

5. life period of the car

6. Income

7. Occupation

8. regular maintenance charges

9. Use complexity

10. chances of reparability.

So for this question, we will make one to one variable.

1. price (-ve) relationship with demand when price decreases demand increase.

2. No. of another car (-ve) when the no. of another car increase the demand for self-driving cars will decrease.

3. Milage (+ve) if milage is good then the demand for this type of vehicle is more.

4. Category of the driver (-ve) if the driver is a professional then the self-driving car demand is less.

5. life period of cr (+ve) it has a positive relation with demand as the life period will decide the durability and the profit of the owner.

6. Income (+ve) relation with demand as the income increase the affordability will be more.

7. Occupation (undetermined) this type of car is delicate so your profession will suggest to you whether you can acquire this type of one.

8. Regular maintenance charge (-ve) if the maintenance charge will more then demand this vehicle.

9. User complexity (_ve) if the technology is highly complicated then the consumer avoids purchasing. so they always prefer a simple vehicle.

10. Chances of reparability (+ve) if the reparability will be good the car should feel more reliable and dependable.

3. Some of these variables are directly in quantitative values that are no problem. but in case of qualitative, or the subject specific one will be measuresd through direct questiona answer session.