How is the demand and supply curve for hybrid cars?
By admin ~ December 5th, 2008. Filed under: Uncategorized.
By admin ~ December 5th, 2008. Filed under: Uncategorized.
2 Responses to How is the demand and supply curve for hybrid cars?
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December 7th, 2008 at 9:18 am
If hybrids become mandatory by law, that demand curve will be a perpindicular spike, the whole enviromental thing is not playing by the old laws of free market economy, and that is why it’s so important to have these decisions based on FACT and not wild eyed sky is falling scare tactics. Like Al Gore talking of sinking islands in the Pacific, while ignoring that others are rising, because of plate tectonics, not sea levels. I do believe less pollution is better, but you save nothing if vehicles recharge with electricity from coal or oil burning power plants. And I believe from the tactical standpoint that Pres. Bush pointed out, that we must get over our dependency on foreign oil. the supply curve is beset with technical problems, resistance by auto manufacturers and the petroleum industry, issues of safe disposal of hybrid components, and productive capacity to build them and their components. Most importantly is the PROFIT issue, everyone profiting from hybrids are doing all they can to jack up prices, and that includes limiting supply. So I would say INELASTIC because demand alone will not increase supply.
December 10th, 2008 at 4:11 am
the curve would be a few degrees off of the 45 degree line
it is a very elastic curve in theory, the cheaper the hybrid vehicle the more the demand.
but the actual cost to build today’s hybrid imposes a high floor for the pricing of the vehicles
as different technology is employed and greater numbers are produced, the price should fall and demand should increase