Econ Ramblings

Tuesday, October 31, 2006

http://www.hybridcar.com/news/in-the-news/demand-for-prius-continues-to-outweigh-supply.html

Ch2

The Prius is pretty ugly. It's also pretty energy efficient. That makes it IN-DEMAND.
It's what the article says. The Toyota Prius is growing more and more popular with consumers, and suppliers and manufacturers are finding it harder to catch up. Being a gas-electric hybrid, the Prius can help its drivers save a lot of money at the pumps, and with rising gas prices, people are finding it more and more (though not necessarily physically) attractive. Since gas prices right now are around Mount Everest level, SUV's and trucks are decreasing in demand, as they are The Gas-Guzzlers of today. Although its pretty early into the Hybrid age right now, the Prius is being seen more commonly on the streets, and even in Hollywood (Cameron Diaz and Leonardo DiCaprio can be seen routinely driving this energy-efficient car around).

Chapter 2 is all about Supply and Demand, and factors affecting these numbers. The rapid increase in gas prices, a complementary product to a vehicle, is causing the demand for cars to decrease, because it is becoming simply too expensive to drive an SUV around to the mall, or just out to dinner. This results in the increase in demand for smaller, gas-efficient cars like the Prius and the Civic Hybrids, because they use a combination of gas and electricity, something that is much cheaper than just pure petroleum.

While I agree that buying a Prius right now would be the smart move, its awkward design and unattractive exterior is giving me second thoughts about buying a car right now. I'd rather wait a few years and save up more money to buy a gas car; while it may be more expensive to refill at the pumps, it would look way more appealing. Hey man, a nice car to own is what keeps me going right now. =D

1 Comments:

  • I agree, the car is pretty efficient, but the exterior is just so ugly. I much rather try to get myself a Toyota Yaris or a Honda Civic; it saves gas, plus it's economy priced. However, it makes me think twice because the Honda Civic is pretty in demand too. Sweet Blog.

    By Blogger Jimmy, at 12:22 AM  

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