This link refers to a new mode of tranportation :
http://autos.msn.com/as/minishow/article.aspx?contentID=4024172&s=Pebble2006
It talks about how the New telsa car from Telsa Motors is the new generation of Automobiles. They say that this car can travel up to 130 mph as it is still a prototype. But they say its got 248 horsepower and alot of torque. The difference between this car and other typical sports cars is that this car has no fuel consumption. Which is totally electric powered. This means that transmission, gear box, engine, muffler, gas tank and all that weight is gone. Making this car fast and light. Telsa Motors is planing to make this car everyones car. The starting budget for this car is $100,000 USD. Already 100 of these cars are sold, and so the real market for these gasless cars begins.
This new car can go for 250 miles between charges, with about 6,800 AA size Lithium-Ion batters to power this beast.
This article relates both chapter 1 and 2 because I think that with the introduction of a new car like this, will strongly offset the economy in later years. Cars like this will sell when produced in quantity, and because when there is quantity, prices will decrease. This decrease in price will further increase demand for this type of cars.
The economics of gas heavilly relies on the consumers, people who drive to school everyday, drives to work everyday, and people who loves driving hummers and v12's. With these people, gas is constantly demanded and results in the expensive gas price we have today. But in later years, when Telsa cars are produced in large quantity.
People are going to be switching over to renewable energies like electricity. When half the population are driving the new Telsa cars, gas prices will drop because not many people will be consuming it. As well as car sales will decline, and results in the shutdown of many auto malls and factories. There will also be few old gas car dealers who are selling cars for as little as thounsands of dollars because theres simply too many out there that people don't want.
At this point, the workers at Alberta oil sands, oil rigs in the tropical areas, and bitumen extraction zones in Trinidad, and last but not least American companies in the middle east will all be laid off. Because of the fact that its no longer a profitable thing anymore, people would start saying "Gas is so last year".
Thursday, November 09, 2006
Thursday, November 02, 2006
Cheaper new cars.
LINK: http://autos.msn.com/advice/article.aspx?contentid=4024279
New Ford Cars selling not so well. Due to gas prices and high taxes. Car dealers have no choice but to lower the cost of new cars. This means that new cars can be sold for as little as $25,000 USD.
Im talking about a full size SUV for that little amount. So what do you think? Does decreasing prices seen reasonable in order to sell cars. What happens if the sold price continues to decline does the profit margin decrease as well? of course! If gas prices continue to increase and car prices continue to decrease, there will be a point when the profit margin is so little that its not worth producing cars anymore. In fact, if the cost of production is more than that of the profit. I think that car makers will begin to shut down. And if this theory works, it would be a way for the government to close down manufacturers and initiate new initiatives for creating environmentally friendly cars.
This link mainly talks about things we talked about in class of chapter 2, where the demand of a product reaches all time high. Everyone wants gas, and for as little as possible. But because resource is scarce, hence "scarcity", prices for those resource will rise.
The link also talks about how these new features are added to make the cars sell better. Does this technique work from an economical stand point? It does, because people are attracted to the exclusive features and thus are urged to buy those luxury vehicles. But the down side is the expenses put into gasing it up.
If people didn't want to go on vacations and get rides to school every morning, then gas prices will drop. As we learned, when the supply is limited, or is controled, the prices for the supply will rise if demand increases. But if the supply of gas is not controled where the public can exploit all the oil reserves, then the price of gas would drop, because supply has increased. Economics is all about the balance of things. Like newtons law, for every action, there is an equal and opposite reaction. The price of gas for the economy is the equalibrium balance between quantity and price.
Junner.Z
New Ford Cars selling not so well. Due to gas prices and high taxes. Car dealers have no choice but to lower the cost of new cars. This means that new cars can be sold for as little as $25,000 USD.
Im talking about a full size SUV for that little amount. So what do you think? Does decreasing prices seen reasonable in order to sell cars. What happens if the sold price continues to decline does the profit margin decrease as well? of course! If gas prices continue to increase and car prices continue to decrease, there will be a point when the profit margin is so little that its not worth producing cars anymore. In fact, if the cost of production is more than that of the profit. I think that car makers will begin to shut down. And if this theory works, it would be a way for the government to close down manufacturers and initiate new initiatives for creating environmentally friendly cars.
This link mainly talks about things we talked about in class of chapter 2, where the demand of a product reaches all time high. Everyone wants gas, and for as little as possible. But because resource is scarce, hence "scarcity", prices for those resource will rise.
The link also talks about how these new features are added to make the cars sell better. Does this technique work from an economical stand point? It does, because people are attracted to the exclusive features and thus are urged to buy those luxury vehicles. But the down side is the expenses put into gasing it up.
If people didn't want to go on vacations and get rides to school every morning, then gas prices will drop. As we learned, when the supply is limited, or is controled, the prices for the supply will rise if demand increases. But if the supply of gas is not controled where the public can exploit all the oil reserves, then the price of gas would drop, because supply has increased. Economics is all about the balance of things. Like newtons law, for every action, there is an equal and opposite reaction. The price of gas for the economy is the equalibrium balance between quantity and price.
Junner.Z
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