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This is my article for this week's topic - elasticity/PED The article above talks about increase in energy prices in the UK. My write-up can be viewed here: https://pamojaeducation-com.campuspack.eu/Groups/13.Y2.ST.ODP.MAY.ECON.SL.A/Nattanopthorns_Economics_Blog/2013/10/7-2_-_ElasticityPED_Newsstand - Bee

The following article is about how the increase in gas prices has spurred violent protests around Sudan. The activists are mainly high school and college students, with one activist been killed by police. The increase in price has made gasoline not affordable for most, as prices doubled,because the government cut its subsidies for gas companies. Therefore gas in Sudan has an elastic demand, causing the increase in price to make gasoline not only not affordable, but also increasing the price of other goods,which are dependent on gasoline driven vehicles.

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.