00:01
Okay, so i see that you need help with this question.
00:04
And it says what caused car prices to fall near the start of the pandemic, and then soar over the next two years? what government policies helped to generate labor shortages in several industries expectations about what particular caused the stock market to crash near the start of the pandemic.
00:22
So first of all, you need to understand the context of the car market.
00:27
At the beginning of the pandemic, many countries went into a lockdown, which led to a significant decrease in demand for vehicles.
00:57
People were staying home, commuting less, and thus the need for purchasing cars is diminished.
01:10
This decrease in demand caused the prices to fall initially.
01:18
Decrease in demand, prices fall.
01:28
Analyze the factors that led to the increase in the used car prices over the next two years.
01:33
So as the pandemic progressed, several factors contributed to the soaring prices of used cars.
01:41
New production, new car production slowed down due to the factory shutdowns in supply chain disruptions.
02:06
Supply chain disruptions, particularly with the global semiconductor semiconductor shortage, global semiconductor shortage, leading to a lower supply of new cars, low supply of new cars.
02:40
People started avoiding public transportation for fear of of contacting the virus, which decreased the demand of personal, which increased the demand, increased demand, personal vehicles, economic stimulus packages provided by governments gave consumers more spending power, which they then used to purchase vehicles, among other goods.
03:32
Rental car companies, which had initially sold off large portions of their fleets due to downward travel, suddenly faced a surge in demand and entered the used car market to replenish their fleets...