Group items tagged

This is my article for this week's topic - income elasticity/cross elasticity/elasticity of supply. The article above relates to the raise in minimum wages of the people in Washington D.C. My write-up can be viewed here: https://pamojaeducation-com.campuspack.eu/Groups/13.Y2.ST.ODP.MAY.ECON.SL.A/Nattanopthorns_Economics_Blog/2013/11/9-2_-_Income_ElasticityCross - Bee

This article should realte to week nine. It talks about Income elasticity of oil prices and personally I find it quite interesting.

Shows how different places have varied incomes.

The demand for gadgets among the young people from 12 to 17 years old reflected the inelastic demand for iPhone. The most desire Christmas present is the Samsung Galaxy phone follows by the Apple. This shows that young people, most of them, who do not have their own income, are very interested in the technology in order to keep up the latest news updates and gossips with their peers or their families and friends. The advertising od these oligopolies are very successful by promoting the products as an essential tool for daily living. The incomes of the families that are able to afford these gadgets reflect that they are from middle income or the rich. The pricing of these products are reasonable affordable as the US dollars is stronger than the Korean Won. The close substitute, cross elasticity is the Apple, which is an American product, which may be compatible in price and functions, but Samsung seems to have greater inelasticity. Christmas is a period of seasonal demand where the inelasticity of new gadgets increases because adults want to please the teenagers with new technology. The businessmen are able to intelligently respond by increasing the supply because they are inelastic in their supply to increase their marginal revenue and to enjoy of scale.

this article relates to our week 9, study because it tells us the the consumers demand for energy is inelastic and how the government decisions affects the price of company products.

The Thai government wants to increase the alcohol average tax by a significant percentage. The tax ceiling for the beer and wine will increase to 2000 baht per liter, which is very significant. This is aimed at increasing the government revenue, as the demand for alcohol is inelastic and increasing in consumption. Thailand has a significant percentage of foreign tourist and foreigners living in the country who enjoy alcoholic beverages. Locals are increasing in their income inelastic and consuming more alcohol. This will hopefully reduce the demand, as alcohol is extremely addictive and have negative externalities such as dream driving causing many innocent deaths.