Group items tagged

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.

The Minister of Education, Mr. David Laws, wants to reduce the national expenditure on school uniform. He believes that the inflated price of school uniform up to 52 million pounds per year is excessive. The schools in the UK have to reduce the opportunity cost of demanding overly priced uniform. This practice must be stopped. In implementing this policy, British families would be able to save 52 million pounds in one year, which is a sizeable proportion of many poor families budgets. In many lower income families in this period of recession, families who are depending on food banks will benefit from this opportunity cost of spending on uniform as they have a scarce budget. This will help them to shift their household expenditures to more essential items such as food. The opportunity cost of them budgeting a significant percentage of their limited income to an inelastic demand for uniforms may create problems of great scarcity to families with many school-going children. The guideline by the minister stated that the uniform must be purchase from the cheaper suppliers, which will reduce the opportunity costs. This will mean savings for the parents. The question is how do these new policies going to be effectively worked out because some rich parents with no scarcity problems will insist or prefer their children to wear higher quality and more expensive uniforms, some even tailoring them.

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

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.

Smoking is a negative externality. Children who have exposure especially to relatives who smoke will have a greater chance of childhood asthma. The smoking ban is very healthful, as it has caused a decrease in the rate of children emitted to the hospital with severe asthma. The ban on smoking in the enclosed public places has helped the children to have less health problems. The government benefits because it reduces government expenditure in the NHS, which is a public good. The statistics reflect the decrease in admission of about 6800 is a positive benefit to the public especially the young children.

A negative externality hits the society as smokers affect children giving them asthma, according to this article. This effect does not affect the cigarette companies, however, but smoking restrictions came into force in attempts of decreasing the damage it does to society.

This talks about Blackberry letting go of 40% of its workforce due to its anticipated $1 billion plunge in profits. Blackberry's share price has also dropped 17%. This was all mainly due to competition from others like Apple and Samsung, and also from its customers sticking to earlier phone models of the brand.

The following article is about the high demand of the recently founded company Raspberry Pi which has begun creating single board computers, which is basically just the "heart" of the computer. They produce their computer chips at an incredibly low price of only 20 pounds per unit and have now sold over 1 million units do to large demand of the cheap processor. Due to its low and affordable cost it has become immensely popular and is predicted to grow even more over the next few years.

This talks about how the supply of avocados is very short while the demand is big. This of course leads to a price increase since supply is short while demand being big.

This is my article for this week's topic - supply/equilibrium/price mechanism. The article above relates to the supply of a renewable energy: the solar energy farm. My write-up can be viewed here: https://pamojaeducation-com.campuspack.eu/Groups/13.Y2.ST.ODP.MAY.ECON.SL.A/Nattanopthorns_Economics_Blog - Bee

Week 9 - News Artcicle

The following article talks about how 2 local environmental activists Zé Cláudio Ribeiro and his wife Maria do Espirito Santo were shot outside their house by illegal loggers who were upset with them protecting the rainforest. On the same day that they were killed Brazil passed a new law making it easier for loggers, cattle farmers etc. to cut down parts of the rainforest reducing Brazil's Commons.

this article is about a possible different way of a business cycle for the future. it shows the recent unemployment rate and it impact on the economy. and investors choosing to invest in new advanced technology will solve some problems like gas price increasing etc

The following article talks about the riots that have been occurring in Venezuela throughout the past few months. It discusses how protesters are angry at the government for rising unemployment and the scarcity of basic items and other commodities. It talks about how already 25 people have died during the riots, according to the government.

This article talks about the change in taxation of cigaretts.

Colorado voters approve 25 percent taxes on recreational marijuana

As many of us know Marijuana is on its way of being decriminalized and legalized in the U.S., some states like Washington and Colorado have already legalized Marijuana completely. Now people in Colorado have voted for a 15% excise tax on wholesale and a 10% sales tax on retail Marijuana to help regulate the trade.

This article talks about scarcity of different commodities and the impact this has on their prices.

This article is about the recent market failure indication in my country, citizens waiting for hours in the sun just to buy basic commodities like oil and sugar. this is due to business trying to over profit from these markets. the government tried to put price ceilings on these products however it lead to artificial shortages of the products in the market.