martes, 9 de abril de 2013

Combis demand:

In this text i will explain how is the graph about combis and their relationship with other facts. 

 Taxes:  If the government enforces a law to raise taxes for Combi drivers, those taxes  will affect severaly drivers because not only there will be protests and unrest against  the laws of the government, also their costumers will reduce and they may also use other ways of transports because combis price is too high. The demand line of the combis will shift to the right ,this means that the price will go up but the quantity will stay the same, this is not good for combi business because there is a space for them to get to the equilibrium point.

The use of more cars: This fact affects also the demand of combis because with more cars there are two different situations, if these cars are cheaper or some kind of cheaper they will make the demand of the combis shift to the left, producing less consumers for combi business because they will prefer to buy a car that is more expensive but are more safe than combis and in a better situation. Because of this probably Combi business will change and decrease their prices against the purchase of more cars for use. If the cars that are sold are not too cheap , the difference in the demand of combis won t be so big because people will still prefer to use combis because they are cheap.

The Gas price: In this case i have researched that the main fuel of the majority of combis here in Peru is Diesel that is petrol very dangerous for the environment , more than common gas. Well If only the Gas Price is raised, people obviously will prefer to get into combis because normal cars and some taxis work with gas and they won t use them too much because of the Gas price that is increased, they will want more the use of combis. In this case the Combi businees will win , they will take advantage of the increment of normal gas. In a graph, the demand for combis will shift to the right, this means that the new equilibrium point will benefit combi business, they will increase a little their price for combis and more people will still prefer them because the price of gas has increased and combis are still more less. If the Diesel is also increased, well there, the demand of the combis will shift to  the left, making that there will be less consumers and this will affect combi business.

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