05 Mustang, you want one?
What happens when demand exceeds supply? You get a shortage of the product. This is what is happening with the new 2005/2006 model of the Ford Mustang. Ford can't keep up with consumer's demand for the newly designed muscle car. With the new found demand for the Mustang, Ford will increase Mustang production to 192,000 in 2005 – 80,000 more than in 2004. An article on the Ford Mustang states that nearly one out of every two sports cars sold in U.S. is a Mustang. Demand for this extremely hot car is higher than any other car in production today. With demand being as high as it is, would Ford have legitimate cause in raising the prices of the Mustang? If not, then the market for reselling the Mustang for a premium arises. Maybe keeping production the same and raising the prices could increase revenue for Ford making the Mustang a true classic. But then again, you have to look at all the lost sales that could have resulted with increased production. When people want that V8 power that comes from the GT Mustang, they are willing to pay a hefty price. How high are they willing to go?