Nationwide, incandescent bulbs, including newer, more efficient halogen models, accounted for roughly 75 percent of general lighting sales this year, according to the National Electrical Manufacturers Association, a trade group, with compact fluorescents making up most of the balance. Manufacturers concede that early versions of the compact fluorescents did not meet expectations for light quality and longevity. Despite advances that have improved their performance, consumers still tick off a host of complaints about the squiggly bulbs: They take time to light up, they do not dim smoothly, they don’t fit with clip-on shades and, worst of all, they cast a harsh and unflattering light. They also contain mercury, raising concerns about breakage and disposal. ...
Millions of consumers have come to the same conclusion, even though compact fluorescent bulbs use about 75 percent less electricity than standard incandescents.
LEDs offer a different proposition. Until recently, customers like Stein could pay about $30 for a bulb – a significant premium even though electricity savings and a life span that extends into the decades can make up the difference in the long run. But several manufacturers – including well-known brands like General Electric, Osram Sylvania and Philips and newcomers like Durham-based Cree – began offering bulbs for around $10 or less this year.
The drop in price has helped increase demand for them, retailers and manufacturers say, although they still represent only about 1 percent of the bulbs in American homes, according to industry estimates. In the last few years, LED sales have doubled at retailers like Home Depot and Bulbs.com, executives there said, reaching roughly 20 percent of their lighting totals.
Finkelmeier, for instance, said she was very happy with the warmer light from her LEDs as well as with the savings on her electric bills.
LED sales are expected to sharply increase, especially given the steep subsidies utilities pay manufacturers and distributors to bring prices even lower by the time the products reach the lighting aisle.
The subsidies – which are ultimately paid by ratepayers – generally go only to lights carrying an Energy Star designation. To get it, compact fluorescents and LEDs must use only a certain amount of energy and meet a variety of other requirements, like dispersing light in all directions and accurately rendering the color of objects they illuminate, that make them seem more like traditional bulbs.
So let's say that "the drop in price has helped increase demand for them." The increased demand will then lead to an increase in price. Will the ultimate price change be an increase or a decrease?
Of course, the problem is that a price decrease does not increase demand (a shift of the demand curve) it increases quantity demanded (a movement along a fixed demand curve). The ultimate price change is a decrease.
