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.

6 comments:

picassoingsome-thing said...
This comment has been removed by the author.
Calvin Wong said...
This comment has been removed by the author.
Calvin Wong said...
This comment has been removed by the author.
Calvin Wong said...

I think that the new law that requires Quebec citizans to have snow tires is great idea. This law will help prevent many accidents from occuring and make driving in the city safer. As the demand for snow tires increase, the supply will become less and less until they dont have anymore. I think that B.C. should not ship our snow tires to Quebec though because in the winter time, it rains quiet often so the roads will be very slippery. They should also establish this law for other provincies such as Manitoba where it also get very cold at winter time.

C.Wong
Block F

picassoingsome-thing said...

It was not a surprise to me that Quebec passed this law, since in my opinion, it is something that every province should consider. What I am surprised about, is the fact that the snow tire stock might be sold out soon. The demand of this product is increased by not one, but two factors. The limited supply of the snow tires undoubtedly increases the demand for this product, let alone it being a government regulation to have them with your vehicle. It's no wonder the supply will run out soon.

I think that if this law does work, it will eventually spread to British Columbia. I think it is a very good idea to have snow tires for the winter season, as it would lessen the percentage of car accidents. If it becomes a law though, what would it do to the substitutes, such as all-season tires? In my opinion, this is a good article and topic to consider, as BC might go through the same thing someday.

K. Chan
Block F

picassoingsome-thing said...

It was not a surprise to me that Quebec passed this law, since in my opinion, it is something that every province should consider. What I am surprised about, is the fact that the snow tire stock might be sold out soon. The demand of this product is increased by not one, but two factors. The limited supply of the snow tires undoubtedly increases the demand for this product, let alone it being a government regulation to have them with your vehicle. It's no wonder the supply will run out soon.

I think that if this law does work, it will eventually spread to British Columbia. I think it is a very good idea to have snow tires for the winter season, as it would lessen the percentage of car accidents. If it becomes a law though, what would it do to the substitutes, such as all-season tires?

I find this article interesting, as it connects to my own article in a way that both situations have different factors aside from price that affects the demand. The supply of houses and government regulations on the snow tires are both important factors that caused a change in demand.

In my opinion, this is a good article and topic to consider, as BC might go through the same thing someday.


K. Chan
Block F