House passes bill to add $2 billion for Cash for Clunkers program.
Keys: Marketing, pricing, consumer behavior, economy, government
Questions for discussion:
- Explain why you think this program has been overwhelmingly successful in stimulating demand for new car purchases?
- What does price sensitivity suggest to you about why auto sales might have been poor until now?
- Which other categories of consumer products do you think would also respond as dramatically to similar price reductions?
- Do you think governments should help certain businesses Ã¢â‚¬â€œ like autos, and not others? Explain your thinking.