With the increase in gas prices these days, there is an increase in the demand for hybrid cars. As the demand for hybrid cars rises, more companies are trying to jump in and profit. And so the supply increases as well.
At first, nobody expected hybrid cars to take off. And the only people buying these cars were "environmental hippies", those idiots wanting to protect our planet for future generations.
But when the oil prices jumped, so did people at hybrid cars. What was a ridiculous price for a hybrid car was no longer as ridiculous; it could pay itself back within a couple years, or shorter at the rate oil prices were rising. In essence, they were a substitute for gas guzzling cars.
Now as the demand is staying constant, other companies are jumping in on this market as well. Expect to see an increase in both the quality and quantity of hybrid cars on the market. And of course, as the supply increases, the price will probably decrease as well.
It's too bad there is still the horrible side effect (extremity) of our environment being protected, and the world becoming a cleaner place. But have no fear, the demand for other cheap, but polluting products keeps coming, and despite the sabotage by the "hippies" to force us all to recycle, many are still holding true and choosing to abstain from recycling. There is no need to worry, although this may delay the process, the earth should be horribly polluted before long.
source: http://money.cnn.com/2011/10/04/autos/hybrids_prius_porsche.fortune/?npt=NP1
Tuesday, February 28, 2012
The effect of overfishing - but will the government be sensible enough to stop it before its too late?
Gloucester, Massachusetts has always been a fishing town. But maybe not so much anymore.
Because of environmental concerns, the federal government is thinking about heavily restricting or completely banning cod fishing in the Gulf of Maine, an area known for its cod. If the government chooses not to restrict the fishing, scientists predict that the cod supply will reduce by over 80% over the next year, reducing supply.
This in turn will most likely drive up prices of cod in the industry, as the Gulf of Maine is a very large supplier of cod fish.
In my biased opinion, this could be an opportunity for a very positive change; the demand could very easily switch to vegetarian products, freeing these fish from being consumed. But the more likely substitute good will be cod obtained from fish farms, where the cod are raised in inhumane environments, with very high levels of chemicals in their bloodstream. In many ways this could be considered an inferior good, as most people prefer to buy fish that are caught from the ocean. Other inferior goods that could act as substitutes could be other types of more inexpensive fish.
Another substitute good that may see an increase in demand could be vitamins, specifically vitamins with high levels of omega-3 fatty acids, vitamin b12, and vitamin b6. Cod is known to be a very rich source of these vitamins, helping promote cardiovascular health.
We shall have to watch and see if the government chooses to put this law into effect. If they choose not to, then the effects on price will merely be delayed, but they will occur as the supply of cod decreases.
source: http://www.cnn.com/2012/02/28/us/fishing-life-threatened/index.html?npt=NP1 (2/28)
Because of environmental concerns, the federal government is thinking about heavily restricting or completely banning cod fishing in the Gulf of Maine, an area known for its cod. If the government chooses not to restrict the fishing, scientists predict that the cod supply will reduce by over 80% over the next year, reducing supply.
This in turn will most likely drive up prices of cod in the industry, as the Gulf of Maine is a very large supplier of cod fish.
In my biased opinion, this could be an opportunity for a very positive change; the demand could very easily switch to vegetarian products, freeing these fish from being consumed. But the more likely substitute good will be cod obtained from fish farms, where the cod are raised in inhumane environments, with very high levels of chemicals in their bloodstream. In many ways this could be considered an inferior good, as most people prefer to buy fish that are caught from the ocean. Other inferior goods that could act as substitutes could be other types of more inexpensive fish.
Another substitute good that may see an increase in demand could be vitamins, specifically vitamins with high levels of omega-3 fatty acids, vitamin b12, and vitamin b6. Cod is known to be a very rich source of these vitamins, helping promote cardiovascular health.
We shall have to watch and see if the government chooses to put this law into effect. If they choose not to, then the effects on price will merely be delayed, but they will occur as the supply of cod decreases.
source: http://www.cnn.com/2012/02/28/us/fishing-life-threatened/index.html?npt=NP1 (2/28)
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