Intro: In the past posts, I have been talking about one of my big decisions I made, which was when I decided to buy my first car. When making a decision, there are many things you take into consideration before making a move. In this passage, I will be talking about what type of market the company I bought my car is using and who is their current competition at the moment.
Paragraph 1: One of the biggest decisions I made was a few years ago when I decided to buy my first car. I was looking at several cars but there were two which caught my attention. I decided to buy a sporty type of car. I have been really happy with it and it hasn't caused me any problems to this day. I feel like the decision I made was well taken, even though I didn't really know much about cars or the companies that made them a few years ago. Now though, I am analyzing the benefits my decision brought to me, and I am also studying the type of market my car is using.
Paragraph 2: The car I own at the moment is a Dodge Charger, which belongs to the "Dodge" company. In my opinion, I think the type of market Dodge is using would be the Monopolistic Competition. The reason I believe this is because there are a numerous amount of companies out there producing cars, but each company is very different and some are known to be better than others, and can sell their products at a higher price than other companies. Dodge is currently one of the highest ranked companies at the moment, and has been making models of cars that are greatly demanded by their customers throughout these years.
Paragraph 3: Another thing that is important as a company is knowing your competition. Like I mentioned before, a few years ago, I didn't really know much about cars and the companies that produced them. The competition for the type of car I have at the moment is "Ford". Dodge has been producing sports cars in the recent years that were demanded by their customers such as new "Challenger" models, as well as "Charger" models, which are the sports cars this company has to offer. Very few companies design vehicles that are similar to these models but ford is probably their strongest competition at the moment making "Camaro" models and "Lightning" models, which would also be sports vehicles.
Conclusion: When I bought my car, I didn't think about all these aspects I have been talking about in these passages, but it has been interesting to view and look at them because they have helped me in recent purchases I have made. As a customer, you always want to get the best out of your product, and the more you know about it, the easier it is to make a decision. I however didn't know a lot about these things when I bought my car, but either way, I feel like a good decision was made.
Sunday, December 2, 2018
Sunday, November 11, 2018
Blog Post 3
Intro: In this short passage, I will be continuing to talk about my Big Decision I made when I bought my Dodge Charger. In the previous post, I explained how demand and supply played a role when I bought my car. Now, I will be talking about the elasticity of demand and the elasticity of supply, as well as explaining how my car was a personal utility to me.
Paragraph 1: After having my car for a few months, I was really happy with my decision. It was something I worked hard for and was one of the many options I chose to buy. When buying a car, it is important to consider the elasticity of demand. The Charger was Elastic because the quantity demanded for these type of cars are greater than the change in price on them over the years. The change in price hasn't really changed much, and this is because Dodge doesn't want the customers to buy less of their products. That is why when I bought my car, this factor was another good option for me.
Paragraph 2: Next comes the Relative Elasticity of Supply, which is when small changes in price can cause large changes in quantity. Since my car didn't really have much changes in price, the changes in quantity weren't really affected. As I mentioned before, the change in price can really affect the customer's willingness to buy products, so Dodge didn't really mess with the change in price dramatically on the Charger models.
Paragraph 3: Finally, there is Personal Utility to take into consideration when you buy a product. You have to ask yourself if you really need that product, and how much benefit will you get out of it. My Personal Utility for buying my car was that I simply needed something to get around with. I felt satisfied with my decision.
Conclusion: As I have stated before, changes in elasticity can easily cause shifts in demand and supply. These factors always have to be taken into consideration when buying or selling a product. That is the main reason why the Equilibrium price for the Dodge Charger was kept at a steady rate. If prices were increased, the demand was simply going to decrease. I didn't buy my car because I wanted one, but mainly because I needed one. Analyzing these aspects of demand and supply will certainly help me make more good decisions in the future when purchasing products.
Paragraph 1: After having my car for a few months, I was really happy with my decision. It was something I worked hard for and was one of the many options I chose to buy. When buying a car, it is important to consider the elasticity of demand. The Charger was Elastic because the quantity demanded for these type of cars are greater than the change in price on them over the years. The change in price hasn't really changed much, and this is because Dodge doesn't want the customers to buy less of their products. That is why when I bought my car, this factor was another good option for me.
Paragraph 2: Next comes the Relative Elasticity of Supply, which is when small changes in price can cause large changes in quantity. Since my car didn't really have much changes in price, the changes in quantity weren't really affected. As I mentioned before, the change in price can really affect the customer's willingness to buy products, so Dodge didn't really mess with the change in price dramatically on the Charger models.
Paragraph 3: Finally, there is Personal Utility to take into consideration when you buy a product. You have to ask yourself if you really need that product, and how much benefit will you get out of it. My Personal Utility for buying my car was that I simply needed something to get around with. I felt satisfied with my decision.
Conclusion: As I have stated before, changes in elasticity can easily cause shifts in demand and supply. These factors always have to be taken into consideration when buying or selling a product. That is the main reason why the Equilibrium price for the Dodge Charger was kept at a steady rate. If prices were increased, the demand was simply going to decrease. I didn't buy my car because I wanted one, but mainly because I needed one. Analyzing these aspects of demand and supply will certainly help me make more good decisions in the future when purchasing products.
Friday, November 2, 2018
Blog Post 2
Intro: In this passage, I will be continuing to write about the big decision I made of buying my first car. In the first post, I talked about the factors I reviewed and analyzed, when I was making the decision of buying it. I will be talking about the demand and supply of the vehicle I bought, what the regular prices for that type of car was, and what factors are forcing the demand and supply lines to shift left and right.
Paragraph 1: The first car I bought was something I don't regret. I feel like I got a good deal on it, and despite the opportunity cost I mentioned in the first essay of spending twice as much on the vehicle, I got many other benefits on it. I know the car was selling for more and was a little bit more expensive because of the demand it had. Since it is a fast car, it is high in demand at the moment, and the supply for it is increasing as well with each new model that comes out. I was well aware of this when I bought the Charger, and those were one of the factors that motivated me to buy it. I knew if I ever wanted to sell it, I could sell it for a good price without having to worry about the price diminishing dramatically.
Paragraph 2: The equilibrium price for the Dodge Charger is steady as well. Like I mentioned before, the demand for those type of vehicles are high at the moment, which is causing suppliers to make more of them. That is good for customers because they are more inclined to make a purchase when they learn this. Although there is a lot of competition such as having to choose between other cars, the equilibrium price still seems to be steady.
Paragraph 3: Factors that have been affecting the demand or supply lines to shift are income, changing tastes or preferences in other vehicles, substitute goods, or simply a change in population. As you can see, it is very easy for the demand and supply line to be moved left or right. Lately though, because the demand for the Dodge Charger is somewhat high, the price has gone up as well.
Conclusion: In conclusion, the demand and supply of the vehicle I bought seem to be steady with each other, which is good news for everyone. It is interesting how the economy is run, and learning this new material has taught me to look differently at things when it comes to buy items. Every factor plays a vital role in the economy and can make a huge impact in it.
Paragraph 1: The first car I bought was something I don't regret. I feel like I got a good deal on it, and despite the opportunity cost I mentioned in the first essay of spending twice as much on the vehicle, I got many other benefits on it. I know the car was selling for more and was a little bit more expensive because of the demand it had. Since it is a fast car, it is high in demand at the moment, and the supply for it is increasing as well with each new model that comes out. I was well aware of this when I bought the Charger, and those were one of the factors that motivated me to buy it. I knew if I ever wanted to sell it, I could sell it for a good price without having to worry about the price diminishing dramatically.
Paragraph 2: The equilibrium price for the Dodge Charger is steady as well. Like I mentioned before, the demand for those type of vehicles are high at the moment, which is causing suppliers to make more of them. That is good for customers because they are more inclined to make a purchase when they learn this. Although there is a lot of competition such as having to choose between other cars, the equilibrium price still seems to be steady.
Paragraph 3: Factors that have been affecting the demand or supply lines to shift are income, changing tastes or preferences in other vehicles, substitute goods, or simply a change in population. As you can see, it is very easy for the demand and supply line to be moved left or right. Lately though, because the demand for the Dodge Charger is somewhat high, the price has gone up as well.
Conclusion: In conclusion, the demand and supply of the vehicle I bought seem to be steady with each other, which is good news for everyone. It is interesting how the economy is run, and learning this new material has taught me to look differently at things when it comes to buy items. Every factor plays a vital role in the economy and can make a huge impact in it.
Blog Post 1
Intro: I am going to be talking about a time in my life when I had to make a major economical decision and what factors played a role in my decision. When deciding to buy an item, you have to think about the benefits you'll get out of it and what you lose from it as well. In the following paragraphs, I will explain how I bought my first car and what my opportunity cost for it was, as well as what my budget was at the time.
Paragraph 1: When I was 17, I was already looking into buying my first car. I wasn't really sure what kind of car I wanted, all I knew was that I wanted a sporty fast type of car. Of course I knew these type of cars were expensive, so I had to carefully think about it. I had saved up $8000 dollars from working with my dad, and was constantly visiting dealerships to view cars. I tested a 2004 Nissan Altima that was selling for $3500. Everything worked with this car and was very economic on gas. However, I was looking for a sporty car that was fast. I tested a 2007 Dodge Charger that was how I wanted it, fast and awesome! The issue with it was that it was selling for $7000, twice as much as the Nissan Altima. I now had to make a choice between an economic car, or the expensive car I wanted.
Paragraph 2: I analyzed several aspects of the situation such as what would be my benefits if I bought the Altima or what my opportunity cost would be if I bought the Charger. The opportunity cost of buying the Charger were that I would be giving up twice the amount of money if I bought it, and would be left with only $1000. However, if I bought the Altima, I would have several money left over and could buy several items as well. Like I said before though, I was willing to pay more for a car that I really wanted instead of paying half for a car that I only wanted because it was Economic.
Paragraph 3: The budget constraint of buying the Charger was something I had to think about, since I was only going to be left with $1000 left for me. I enjoyed my car though and was happy with the decision I had made. Another factor that played a role in my decision was the Law of Diminishing Returns. I was sure I would get many benefits when I invested my money in buying my Charger, such as having a nice car and being able to finally drive myself wherever, as well as the fact that it was good on gas.
Conclusion: When buying an item or selling it, you have to think of the benefits it will bring you, the opportunity costs from choosing things, or simply the budget you have at the moment. It was a difficult choice to make when I saw that I would be paying double the amount if I bought the Charger instead of the Altima, but after analyzing these aspects, I was happy with the choice I made. It felt good to have bought something with my own money, and was really happy about it. That was one of the choices I made at a young age, and was my first big decision.
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