Entry 13: The Return Of Zeppelin

The basic factors that decides demand and supply can be memorized with two mnemonics; TRIBES (Supply)and ROTTEN (Demand). Demand for the Zeppelin dropped to an all time low after the explosion of the Hindenburg. The reason it dropped is because the cost of riding on the Zeppelin was too high (considering death), and the benefit too low (slow transportation). Now the time has changed and Zeppelin is again in the market now. The value of Zeppelin increased because as people's income become higher and disposable income increases, people have money to spend on these leisure transportation. Another major reason is the advancement of technology. Because the brand new Zeppelins have improved quiet interior, it became a pleasure to ride in, and also the use of helium instead of hydrogen that is a lot safer. Safety was the major kill shot for the Zeppelin caused by the Hindenburg and because of the improve in technology, people are more willing to venture on these Zeppelins. The owner owns the only one in North America and one out of three in the entire world. This far distant in substitute (there's no other air travel that's as safe, as enclosed, as special, and as leisurely) as the Zeppelin so far. The modern technology was able to bring back the less safe glory of the past and this attracted many people. This market is an oligopoly and close to a monopoly because there are only 3 in the world that makes it an oligopoly. It is very similar to a monopoly because he actually has the only one in North America and there are no other same service available in North America.