All right - next!
I didn't use an article for my blog entry. I wrote about relating the information to my life. I hope that's okay..
I agree with Morgan on how car dealerships use incentives to their advantage. When my mom and I went to get my car I noticed how point 6 can be used to the dealers advantage. I test drove 3 or 4 cars and the dealer definetly put a lot of effort into trying to sell me a more expensive car because it had cool things a new teenage driver would want such as a sun roof or a new stereo system. It's definetly important not to show too much emotion when looking for a car, because dealers will definetly play off of that.
This is soooo true. I'm not sure how many of you have gone to purchase your own car - but the biggest advantage you can give the dealership is to look like you will not walk away from the deal. Remember that there's always another car right on the next lot. My husband and I found it really funny - to show him how cool the car was, the sales guy popped the hood and kicked the tires, etc. For me? Ooh, look, the mirrors move and look at all the radio controls on the steering wheel...
And from Vicky:
It's all about the information you have. When buying anything, you need to be an informed consumer. Don't expect the salespeople to educate you. It's your responsibility to educate yourself.
"Let the buyer beware" - caveat emptor. Great comment, Vicky. Should I be alarmed that you have owned more cell phones than I have, and I am twice your age? ;)
Acting on a whim, or executing some action solely on emotion, though it may be fulfilling at first, often times may leave regretting your quick decision. Like (almost) anything in life where emotion isn’t enough, a little bit of research, enough to acquaint oneself with the matters, will help.
My family makes fun of me constantly because of the time I'll take to make a decision on something big. In the last 5 months, we've had to buy a clothes dryer, a car and a new bed. Each got the same analysis from me. Yeah, I'm a sick person. But jeez...it's my money...why would I want to throw it away? If you can take the emotion out of the decision, get the research done, as David mentions here - it's rare for me to regret a purchase. I like that.
Wow, this turned into a good discussion on consumerism. Keep it in mind when we get further in this present unit. :)
From this, it’s obvious that the price displayed may not be the lowest price the dealers could sell, or even the actual worth of the car. (This is still David)
Excellent analysis on incentives, David! So true...especially with cars.
Thanks, I was just wondering about the links!Can we do extra analysis blogs or comments for extra credit of some sort? Or would we just get brownie points for being overachievers?
You, an overachiever? Say it ain't so! lol
Let me think on this one.
From Brent ("Some Stuff For You" below):
The income effect states that when your income is fixed, as the price drops of a certain item, you can purchase more of that item with the same income. So the Demand curve is downward sloping because the quantity demand increases (x axis) as the price drops (y axis). The substitution effect describes the same thing but going in the opposite direction. When the prices increase, the quantity demanded of that good decreases, and people can purchase less. People will then find substitutes to that product and the product's price will continue to increase and people will be able to purchase less and less of the product.
EXCELLENT analysis and explanation of the income and substitution effects. If anyone isn't getting the difference, read through this again. And again. Great job!
Morgan let us know that:
I like grape jelly better than strawberry, just to let you know...
If those are my choices, me, too. Otherwise, I personally like Apple Pie jam. It's amazing.
And then Sam said:
Note to morgan: Raspberry jelly is so much better than grape and strawberry, just to let you know. =)
Raspberry jelly is good...but I stand by my choice. ;)
These threw some people off ("Supply & Equilibrium" below):
(1) Do these things affect the demand or supply of oil? (a) The Alaskan oil pipeline was completed. (S) (b) Price supports were removed from oil. (S) (c) Oil was discovered in the Bering Sea. (S) (d) Sport utility vehicles become more popular. (D) (e) The use of nuclear power declined. (D)
(3) Demand or supply of jeans? (a) A new technology becomes available that cuts the time to make jeans in half. (S) (b) The price of denim falls. (S) (c) Jeans go out of fashion. (D) (d) The price of a pair of jeans falls. (QD/S)(Look at the movement on the graph if both curves are present) (e) The wage rate paid to garment workers increases. (S) (f) People's income increases. (D)
Okay - I'm off to start on your blogs! It's 7:30 already, so don't pout if I don't get to you tonight. :)
See you tomorrow -