As it turns out, lowering the price of an item makes that item sell better. This, in econ, means that item is “elastic” — and cars are certainly elastic. Based on Ford’s latest price drops on the Mustang Mach-E, EVs are no exception.
Of course, EVs in the U.S. used to be cheaper en masse. Remember when any new EV would net you $7,500 off your taxes that year? Pepperidge Farm remembers, and so does icemilkcoffee:
We used to have such wonders. We were a country that dropped the price of every EVs by $7,500, regardless of their country of origin. We were going green, we were going to save the world. Then, of course, one Joe Manchin had to come and mess it all up.
Now everything’s weird, the tax credits are convoluted, and EVs cost more. It’s a shame, but at least we have those memories of ages past to keep us warm in the cold, EV-free light.
Congratulations, icemilkcoffee, on your Comment Of The Day win. Here’s a track that has absolutely nothing to do with anything, but has been stuck in my head for the past few days. Look, if you find a great song about price elasticity of demand, I’d love to hear it:
