tag:blogger.com,1999:blog-7404681916600925033.post3736317719366623918..comments2009-10-24T09:32:02.500-05:00Tony Cooksonhttp://www.blogger.com/profile/12565713889808330198noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7404681916600925033.post-34122136937411424312009-10-24T09:16:54.837-05:002009-10-24T09:16:54.837-05:00Hi Tony<br /><br />Shipping the good apples out is much simpler. You ship the more expensive apples out because it cost just as much to ship a pound of apples that will sell for $2.00/lb as it does to ship apples that will sell for$1.00/lb. since you make more money on the $2.00 apples the shipping cost is a smaller percentage of the sales price so it is more profitable. <br /><br />I would guess you see more of the expensive cars because those who would buy less expensive cars have less to spend on parking etc and have public transportation at a cost effective alternative. Hence, there is less purchasing and driving less expensive cars. There is an additional cost of public transportation that the lower income people can pay because it doesn&#39;t cost money. They pay in the &quot;hassle&quot; or inconvenience of public transportation. <br /><br /> Those with higher incomes can not only afford a nicer car, but the parking etc and will pay the money for parking etc. rather than the hassle or inconvenience of public transportation. I think it comes down to how much each transportation option is a percentage of a persons income and how much the hassle factor is worth to each. I.e. nicer car or not is a function of income and hassle factor preference. (in academic speak w/o the math symbols, sort of)<br /><br />Fletch<br /><br />P.S. Oh, just figured out you are now at University of Chicago. Congratulations! You are officially really really really smart about economics. Just wait till you actually take some classes. :)<br /><br />P.P.S. How is that for lack of humility. Me suggesting to you another way of looking at the situation. My undergrad was in finance and a long<br /> time ago in a galaxy far far away. Though my gpa in more econ courses was more than full point above my finance gpa. I am a student of economics just not for any kind of credit. (yet, he says optimistically)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7404681916600925033.post-42574970329336719942009-07-15T10:19:17.190-05:002009-07-15T10:19:17.190-05:00As I walked to school today, I had a few other thoughts about what drives the difference in types of cars:<br /><br />1. Income differences. If Chicagoans are richer, they&#39;ll tend to have newer cars.<br /><br />2. Gas is more expensive in Chicago. This could have lots of different effects. But, it might make newer fuel-efficient cars more attractive.<br /><br />3. The potholes are deeper, and the winter roads are saltier. Hence, cars wear out and rust out faster.<br /><br />I&#39;m sure I didn&#39;t cover all possible explanations. I really just wanted an excuse to talk about apples... so, readers: Do you have other ideas?Tony Cooksonhttp://www.blogger.com/profile/12565713889808330198noreply@blogger.com