Principles of Microeconomics: Flying Automobiles

free essayTechnologies develop rapidly making people’s lives easier. Some innovations are accepted, while others, like novelties, can be rejected if consumers do not understand them. However, the image of flying car has been showed in the movies and described in the books for a long time now. Thus, this fact may show that people are ready for such vehicle. Nevertheless, new products do not only deal with customers’ emotions, but they must be also economically favorable.

Impact on Consumption/Consumers, Demand, Supply, and Prices

New products, such as a flying car, may invoke significant interest in consumers. It may result in great demand; however, it depends on the price of a product (Rittenberg 73). The production of flying car will be initially expensive, because the companies can advance it only after particular experiences. For this reason, they may have many problems in terms of adapting prices to market demand. At the same time, the producers of flying cars will manufacture limited supply of the product due to the uncertainties associated with the product’s novelty.

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The revolutionary change will influence significantly the consumption of regular cars. Once consumers become confident in the new automobile, they will prefer to replace their old ones. For this reason, the car industry may undergo a huge fall in demand, which may decrease prices. Later, the car dealers that are not ready to produce new unique cars within their company will be forced to cooperate with the producers of flying cars. As a result, many organizations may be involved in mergers and acquisitions.

Car industry is very broad and includes many suppliers and their businesses. The famous car corporations influence not only other car manufacturers, but other spheres as well, for example, oil producers. Changes in car demand and supply may alter the old business model and lead to new trends. Moreover, the innovation may change people’s lifestyle, too.

Impact on Housing Market and Airline Industry

Flying cars will have different speed parameters, which will make transportation faster. It may result in people choosing housing further away from their workplace. People may want to live with their families in a quieter or cheaper house/apartment. Additionally, they will save time spent on getting to supermarkets or to school. All these factors will depend on the car parameters and price.

Unlike the flying car, airlines fly longer distances. Planes transport people between various countries that are located far from each other or on different continents. If the flying car has good speed, it may transport the citizens to other lands that are on the border with their homeland. Thus, consumers may want to save funds on their holidays and go not too far from their house using their flying car. For this reason, airline industry may experience a significant decrease in demand.

Impact on Transportation and Commuters

Transportation and commuters depend on the flying car features as well. However, the invention of this type of vehicle will demand a new traffic system. The government will have to create new laws, regulations, and traffic signs. Such major changes will influence the previous transportation balance.

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If the price of the new car is affordable, many commuters will want to purchase it to save time on long trips to work. In addition, people will be able to avoid traffic jams, since some citizens will have usual and others flying cars, which may allow traveling at different elevations. However, all car users will need to know new traffic rules. This necessity may result in opening additional schools for the drivers of both categories. People will have to acquire new driving licenses, which may result in chaos. For this reason, the government must understand that all changes must be gradual as well as allow consumers flexibility in their actions and wishes.

Impact on Healthcare

The novelty may open the new area for insurance companies. Many uncertainties associated with the flying cars lead to the feeling of insecurity. Nevertheless, it will not stop customers from buying new convenient cars. Thus, insurance companies may experience big grow in income. At the beginning, all users will want particular promises from both the car dealers and insurance companies about their health and safety.

Human safety is connected with the usage of well-proved safety techniques (Dhillon 57). Therefore, the flying car demands the creation of new measures, which will allow to avoiding huge risks. Proved safety techniques will result in customers trusting the new product and, therefore, lead to an increase in sales. Trust between the companies selling the novelty and their consumers is vital for the business development.

Old safety techniques highly depend on human error rate prediction (Dhillon 58). In other words, care strategies are based on the statistical data that allows predicting critical human actions. Nevertheless, mathematicians cannot make reliable predictions on the flying car safety due to the lack of long-term data. Flying car, like any normal car, is associated with interaction and emotional stress, but these two factors will be especially significant until users gain sufficient driving experience (Dhillon 59). For this reason, the healthcare industry may face new types of emotional diseases, because physicians cannot predict how the innovation will influence psychological state of its users.

Impact on Defense

If the United States is the first to invent the flying car, many other countries will want to adopt this invention within their borders as well. Such situation may change relationships with other countries, which will directly reflect on its defense. Moreover, the inventors must interact closely with the government from the beginning, because national security requires professionals who are ready to deal with many uncertainties (Watson 1).

The innovation may create highly volatile environment both inside and outside of the country. Despite the United States is famous for its strong and professional defense. For this reason, the flying car safety must be addressed and analyzed from all sides not to distort usual protected environment. The innovation must be adapted gradually and consistently.

The flying car studies as well as the changes connected with its implementation may set up the development of other vehicles including the military types. Moreover, the flying car suppliers may want to deliver their products, for example, to military. Mass flying cars production will help to reach economies of scales, which is favorable for the industry in general. As a result, risks and uncertainties may be compensated by other innovations.

Impact on Education Policies – Schools and Universities

People will need to learn many new skills to drive the flying cars. Its operation may not be simple and accessible for the majority. For example, many users may fear to drive the car in the air as well as deem that it is not reliable. However, the government can establish special schools and universities, which will not only teach how to drive the car, but also study psychological state and changes associated with this invention.

On the other hand, if flying cars are simple to understand and drive, then some additional driving courses in already existing schools will be enough. Nevertheless, even if people may not want to drive the flying cars, they must be aware of the rules due to others who decide to drive flying cars. They must follow the same rules to be able to interact with different car types. Consequently, they must also participate in “adaptation courses” to know how to drive safely.

Others Impacts

In general, people may become more efficient with the help of flying cars, which means that they will be able to accomplish their daily routines faster. Time spent on the road makes up a significant part of everyone’s lives. Besides, the majority will give preference to this invention and refuse using public transport because of traffic jams. On the other hand, if all cars take the air space, it will open more roads for other types of vehicles, for example, bicycles. As a result, the citizens will receive more comfort and satisfaction from driving and riding.

Additionally, the flying cars may lead to the introduction of new professions. For example, people who are going to control the air traffic, replace vehicles parts, or rescue the flying car users from accidents. New types of tank stations may emerge, because the principle of fueling will be different. Thus, it may lead to the invention of “air cafes and shops”, because people will be constantly driving in the air.

Conclusion

The flying car will change old business principles and current lifestyles. It will help to create new businesses and types of care. However, such significant changes must be implemented gradually, because people are usually resistant to change. The invention is associated with many risks, but the government will have to make sure that the alterations will benefit the society. To conclude, the flying car may improve the citizens’ comfort and life conditions. On the other hand, it may disrupt old businesses that are efficient and reliable. The innovation must gradually integrate in people’s daily routine eliminating danger and uncertainties.

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