> Since they buy thousands of cars they get the lowest prices possible from manufactures They also don't get much to choose in which models, and that's the act

> Since they buy thousands of cars they get the lowest prices possible from manufactures They also don't get much to choose in which models, and that's the actual point of the thing. The overall problem is fitting low elasticity in production vs variability in consumer demand. Once you understand that problem is pervasive, you see solutions to it everywhere: * Why do multi-fruit juices never advertise the exact composition of the blend? Because it's variable! They do production arbitration, they lower waste in overproduction of some juices (which depends on weather) * Same thing with cooking oils. In France we have 'isio', which is a blend of 4 oils. Again, though not much advertised, these are variable in their content. * Same thing with industrial cheese. These are made out of surpluses of various other cheeses. * Sausages: variable content again (it even got into the a language expression!). Sometimes the demand is lower for some low grades of meat; and that's where they get turned into sausage. * All of these also being arbitraged by promotions and coupons! We talk of the market and have beautiful models of matching one demand to one supply, but really things are much more intertwined than what is seen at first glance.