Demand curve in Peru

An example here in Peru apart from children is in Public transport.

Combis are a major problem here in Peru and it has a demand curve , there are some options that include shifting the demand curve and moving it . One of them is by eliminating these combis by introducing other way of transport or by changing the price of the Metropolitano and this will cause more and more people to prefer the Metropolitano than combis, that is a lot safe. This achieves to shift the demand curve to the left so the combis will be less. This option allows you to shift the demand curve and so, eliminating combis and replace them with other transports.

Other way to change the demand curve is by moving along it, if the government rises the taxes and the prices of the combis, there will be less people that will prefer this way of transport. Remember that nowadays it is very cheap! and poor people like this and by moving it for more price, it will be unfair for them but at the same time good because combis produce many problems in people and the environment. In this option, the combis stays but their prices rises and this will affect people.

Nowadays there is this problem and i think the best choice is the second one.

Law of unintended consequences

One day, years ago I wanted to wash cars for money and was a very good idea, i received 15 soles for each wash. First i started with my car and then people of my street saw me and wanted their cars to be washed. What i wanted was only to clean my car and get 15 soles each week. But consequences got mad, there was a car wash business down the street and they washed for 17 soles and they got less and less clients that made them broke. I didn t wanted to make them broke i just wanted to clean my car but opportunity to make more money came and i did not reject it. It was a consequence i unintended.

Combis problems

A national problem:

This transportation method is a severe problem here in Peru, it includes the "Combis" these vehicles produce very bad gases that contaminate the environment, this is only one of many of the problems the combis produce. At the year, the majority of accidents are in public transport in Peru, this is because of the actual state of the combis, they are imported from China or Asian countries but in not a good state , they are very used and unstable. The risk of having an accident in a combi is very high. They also interrupt the traffic jam , they are main cause why there is so much traffic in Lima.

A way to solve this general problem with the combis is not so easy, is very difficult. A law to make is not a good way to solve this, because people, especially combi drivers won t follow the rules and eradicate them very fast is worst, there will be protests. So to change this problem a possible solution is to make or build another way of transport that will compete against combis and people will prefer the new transports, other method is to improve the transports we already have to be more safetly so people will prefer them. Another way is to tell or convince the combi drivers to sell their combis or use another vehicle , a better vehicle than combis.