Ch 2 blog

Do electric cars have enough drive to go mainstream?
http://www.cnn.com/2010/TECH/innovation/10/26/electric.cars/index.html

Summary:

Major car manufacturer are preparing to launch their electric car models (THINK City car) and expectation are so high that Nissan has announced that it will close its U.S waiting list at 20,000 pre-orders. The vehicle run on zero carbon emissions and running cost less than a quarter of the conventional vehicles. However, despite environmental advantages the vehicle is restricted to only traveling 70 miles per charge and has a top speed of 70 miles per hour. Many car manufacturer and ardent supporters claim that the electric car is not ready to replace the primary car because the distance that the car can travel needs to double or triple and the cost needs to come down before it can replace the primary car. Currently the cars are not cheap; the THINK car price tag in the U.S is around $25,280 after federal tax savings. (The price in each country depends on government incentives) The growth of electric cars really depends on the speed at which governments build the infrastructure for charging them in city centers, as well as the price, range, and performance of the cars themselves. Currently, only a hand full of cities in Europe even supports the THINK car and hopefully many cites around the world will soon follow this trend.

Connection:

This article connects with Chapter 2 in the sense that it expresses the high demand for electric car resulting in an increase in demand. This increase is cause by tastes and preferences because the vehicle is very efficient on carbon emissions. Another factor affecting demand is the change in price of complementary products. The vehicles are electrically charge therefore the running cost are cheap compare to the running cost of conventional cars because of this, people may turn to electric cars for this benefit. Therefore, an increase in demand results in an increase of prices and increase of quantity exchange. The electric cars are elastic. It is because there are many methods of transportation and many substitute products.

Reflection:

I believe the electric cars will start to become a trend in the time to come because they have not even advertised the product and it is ready popular among many people around the world. Today everyone is so concern about global warming that everyone is chipping in to help stop it. As well as “most manufacturers are still dipping their toes in the water.” (Developing better electric cars/more efficient) I also believe the increase in demand for electric cars will have a great affect on the market for conventional cars and the prices of gas. Because of the rising popularity of the electric cars, suppliers will eventually produce more electric cars than the conventional cars. As a Result, gas price will drop because it is a complementary product to the conventional cars. Nevertheless, it will be a long time before this event happens or if it does even happens. . . .