Why do you think car prices are higher in the uk


Problem

Read the following text, then answer the question.

Car prices in the

UK Britain is still the most expensive car market in the European Union despite price cuts by some producers, according to a survey by the European Commission. Prices in the UK are more than 50% higher than in Denmark, where pre-tax car prices are the lowest in the EU. In the UK, a Volkswagen Passat is 49% more expensive than the cheapest euro-zone market in Portugal. In fact there is a variation of more than 30% in EU car prices for the same models in different countries. The European Commission believes there is no justification for prices varying by more than 12% between countries. Direct Line, the insurance group that sells cars through its jamjar.com subsidiary, said UK consumers were paying £1bn a year too much for new cars.

Question

1. Why do you think car prices are higher in the UK than in other EU countries?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: Why do you think car prices are higher in the uk
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