Economics Question#2

Last week’s question: Why do female models earn so much more than male models?

I suppose that was a bit easy but here’s the answer anyway. The main point is that models are used to sell clothes and that women spend more than twice as much as men in this area. Magazines such as Vogue and Elle exert an enormous influence. They feature hundreds of female models – so one who stands out is worth a fortune.  And there are whole areas such as cosmetics where the market is almost exclusively for women.

 

This week’s question is:

Why do new cars costing $8,000 rent for $25 a day , while morning suits costing only $250 rent for around $45?

 

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One Response to Economics Question#2

  1. Ismael says:

    I suppose you can use the car more times than the suit, so the return on investment would be similar…
    Another explanation could be the posibility of insure the good..

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