Topic 13: The Return of the Zeppelin

Determinants of demand are the prices of related goods, expected future prices, income, expected future income, population, and preferences. Determinants of supply are the price of factors of production, the prices of related goods produced, expected future prices, and technology. The determinants that apply to the success of Zeppelin and to Airship Ventures are technology, preference, and expected future price. Bank investment is one of the determinants of success of Zeppelin. If no one invest, the cost will be very great! Technology has totally change the return of Zeppelin. They change the gas in Zeppelin from hydrogen to hellion, so the Zeppelin won't explode when it react with oxygen. Also, the technology make the experience better by reducing the noise and the machine. Airship Ventures is an oligopoly, only three airship company own a Zeppelin and only one in the United States. Three determinants of demand for the success of Airship Ventures are preference, expected future prices, and the prices of related goods. People's preference decrease when the Zeppelin exploded years ago, and decrease the demand for it. The prices of related goods also affect the success.  If a hot air balloon can do the same thing but cheaper, then people will tend to go with hot air ballon. I think airship travel is not a good idea. Only when the price of the Zeppelin is lower than the related goods, I will consider it.