Question

Submit a draft of the first section of your Economics Module Assignment. While a “draft” your submission, it must be in paragraph form, properly formatted and proofread thoroughly. I expect your draft response to each topic to be between one half and one page long.

1. INCENTIVES TO BUY HYBRID VEHICLES

2.DON’T FORGET THE COSTS OF TIME AND INVESTED FUNDS

3.LAW OF DEMAND FOR YOUNG SMOKERS

Answer 1

Answer : INCENTIVES TO BUY HYBRID VEHICLES

Hybird vehicles are used with two or more engines. The hybird vechiles are battery which charged with electricity. There are various benefits associated with purchasing hybird vechile such as government provides various incentives and special discount to the purchase of hybird vechile.

Incentives are such that enviornmental friendly means that it has commited no pollution and create enviornment clean as well as monetary benefit such as providing credit incentives and lower tax bills. Regenerating system it means whenever you put a brake than a little bit battery of the vechile has been charged. Less utilisation of the fossil fuel as well as engine of the vechile is light and smaller in size.

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"Dont forget the cost of time and invested funds"

Investing in which type of fund is very diffcult task for investor. Here, the cost of time is the oppournity cost which an investor has to be beared related to the decision.Cost of time means that how much time has been involved in returning this amount of gain in the future time period. It is an important factor which has been considered while taking proper decision.

Proper analysis should be done to see that if business has been invested fund than what it is oppournity cost in terms of time and return. Firstly, it should analysis that at particular time duration cash should be needed to purchase an equipment or what other alternative are giving the result at same time duration.

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Answer : "Law of demand for young smokers"

The law of demand states inverse relationship exist between them. As price of the good increases quantity demanded decreases where as vica-versa. As price decrease of cigaretees than demand has been increased . As people who smoke cigarettes earlier start smoking more and new smokers are added. Where as price of cigarettes increasesthan demand from youngsters cannot decrease.

As young smokers are smoking for there leisure and enjoyment so they paid higher price for purchase of cigarettes as they are additive to the cigarettes . So the law of demand does not hold good for young smokers as price does not affect there consumpation too much.