Microeconomics Journal

After reading Chrysler Enters the Race to Introduce Electric Models by, extremum Vlasic Chrysler is planning on producing an galvanic car to sell in 2010. Chrysler has three galvanising models now but is planning on producing a full line of cars in the future. This is an attempt by the auto maker to compete in the grocery store for electrical automobiles. Comp ard to G.M. Chrysler is adopting its existing models to electricity rather than building a forward-looking platform, putting their money into technology rather than the platform of the car. part Chrysler is committed to electric vehicles, Mr. Nardelli said the project would benefit straightaway from a proposed $25 billion federal loan political program for the United States auto industry. Chrysler is attempting to compete in the new essential for electric cars due to the rise in fuel determines, at last decreasing fuel prices by making the affect to a greater extent stretchable. Now that oil prices have sky rocketed the American hatful are admiting more fuel efficient cars and demanding less cars that are on the market today. Therefore the demand for cars on the market today is inelastic. As gas prices increase demand for cars diminish and revenues decrease. Chrysler is creating a supply to meet the new demand for electric cars to increase their revenue.

Right now the supply for electric cars is precise inelastic because there are not many on the market, making them expensive. As Chrysler and other auto makers come step to the fore with electric cars the supply will go bad more elastic and cars will become more affordable. This is because of the law of supply, as the price of a product increases the quantity supplied will increase. Until electric cars become more affordable people will continue to contribute high prices at the gas pumps. Right now demand for gas in America is fairly inelastic. Once electric cars become affordable and more and more people bugger off driving them the demand for gas will decrease. This could make the demand for gas more elastic. When the demand for a good is... If you call for to get a full essay, order it on our website: Ordercustompaper.com

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