The growth of the car population by almost 40% can be attributed to the rise in demand and supply. There are several factors that might have caused the growth such as changes in tastes and preferences, increase level of income and wealth, decrease in factor prices, increase in productivity, etc. Hence, this essay aims to discuss the demand and supply factors that have contributed to the growth, especially in Singapore.
It should be noted that familiarity with the standard workhorse model of introductory economics, demand and supply, is very important. (Most economics courses cover this useful economic model early on because of its central importance to economics, both at A levels and at first year undergraduate, university, and college economics courses too.)
This economics student, in his writing, has demonstrated the skill of verbal application and can explain the various factors affecting demand and supply. This is good.
However, the economics essay answer could have been greatly improved with the use of an economics diagram, and in this case the diagram should show both demand and supply increasing. Always remember to use good, clear, relevant, well-labelled and useful economics diagrams to answer economics examination questions.
Special thanks to J, A, S, and other economics students for their kind, invaluable and useful contributions. Thanks for reading, and cheers.