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2000) reported that consumers' preference for SUV did not fade but showed demand for it to intensify. In this market, the determining factor for SUV demand is the consumer's taste and preference. Consumers were willing to pay more for a SUV than a sedan because they feel that a larger and heavier vehicle can protect them in an accident. The automakers responded with increased supply as annual sale of SUV surge year over year.
However in 2006, the automobile market for SUV has changed dramatically. With gasoline price more than tripled to $3.00 a gallon, the demand for SUV dropped off significantly...
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