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
It is interesting to look into how people can just overlook positive externalities when they are so obvious. It could easily be argued that the positive externalities of creating and selling hybrid cars massively outweigh the positive externalities ofcars that use gasoline. In fact, the same can be argued as far as negative externalities, except with the hybrid cars obviously having less. Its amazing what a strong core of lobbyists and a solid marketing department can do to the world.
ReplyDeleteAnother thing that affects the demand for hybrid cars is consumer taste. Unfortunately most of society believes that anyone who drives a hybrid or an electric car is an "environmental hippie". It's funny how with gas prices rising hybrids are starting to look much more appealing. People who may not care about the environment, but just want to save money will buy a hybrid car and help decrease pollution.
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