Supply and Demand of Hybrid Vehicles

This article talks about how the demand for hybrid vehicles is going up. Gas prices are going up, which is leading to demand for hybrid vehicles going up. Demand is so high for hybrid vehicles, that there are waiting lists for them. Consumers are even paying extra money to get higher on the waiting list. But there is a problem, there isn’t a big enough supply of hybrid vehicles. The wait time for the Lexus RX 400h is 1 year, Lexus even had to stop advertising so they wouldn’t get so many orders. There is a reason for there being a low supply for hybrids, the reason is that it costs more to develop. Many manufacturers believe the market isn’t strong enough to develop more and more hybrids. Hybrid vehicles use 2 engines, a gas powered and electric powered one. Hybrid vehicles are supposed to be two times more efficient than your conventional car. As the years and years go by, more and more hybrids will be made, which should in turn, result in them costing less to make.
This relates to the section on supply and demand in Chapter 2. The demand is increasing because the tastes and preferences for vehicles have changed dramatically. The high oil prices have lead to people changing their preference to hybrid and not gas powered vehicles. The supply is changing because of technological change, which is making the production of hybrid vehicles cheaper, which is raising the supply of them. But hybrid vehicles are a bit different than most products. At this time there is a high demand for hybrid vehicles, but the supply isn’t dramatically increasing. Even if hybrid vehicles are charged at a higher price, the demand will stay high. But since there is a small supply, the demand for them goes up.
I think that hybrid vehicles are here to stay. Technological change will help decrease the price, which will increase supply. Once supply goes up, the price will go down, which in turn will lead to demand going even higher. With many scientists talking about how global warming is affecting us, people will start caring about the environment. Also, the gas mileage is greater, which means people will spend less money on gas, which is another incentive on buying hybrid vehicles in the future.
http://www.detnews.com/2005/autosinsider/0506/01/A01-197580.htm