Saturday, October 25, 2008

Chapter 2: Supply and Demand

Source: http://www.theguardian.pe.ca/index.cfm?sid=183650&sc=98


Summary

As the winter season closes in, the Prince Edward Island's residence has another thing to buy for icy weather: winter tires. Since in Quebec has passed a legislation ruling all drivers to have snow tires, there are going to be a shortage of tires. The new law is in effect from November 15 to April 15. The Quebec provincial government passed this law to decrease accidents because there were about 38% of winter accidents which drivers did not had snow tires on. Manufacturers are advising car owners to buy snow tires early since the stock is running out and might be sold out soon.

Connection

The link between this article and the second chapter of the textbook are supply and demand. Usually, Canadians across the country opt to have snow tire but there are few who choose to use all season tires. The demand of snow tires increased because the Quebec’s new provincial law mandating only snow tires in the winter season. Without a doubt, this triggers companies limiting supply to other provinces since there are likely more sales in Quebec than other provinces. This really affects other drivers in other provinces because in Canada everywhere is affected by the cold and icy season. In other provinces, motorist who wants snow tires for safety would have to order early before supply runs out.

Reflection

In my opinion, I support having a law to restrict drivers to drive with snow tires during the icy cold winter. By having snow tires, there are many drivers who were involved in accidents which can be prevented. By passing this law in Quebec, provinces like Ontario and Manitoba might also create similar legislation. However, this regulation might affect people who do not have enough money to buy snow tires. Some people might think that having old cars with new snow tires which costs over $200 for a set of four. If I had a car, I would definitely have snow tires during the winter season. It is safer to have those on. Safety is the most important in a car.