Group items tagged

Due to extreme weather changes, droughts and floods are causing bad harvest all around the world. This causes corn and wheat supply to decrease and food prices to increase. Food however has a very inelastic demand. Food is a necessity and therefore people are willing to purchase it at higher prices. 

This article tells how the mayor is trying to increase the minimum wage in San Diego. Some people think it could be bad for business and that it would eliminate jobs. The article also talks about taxes and how they should be imposed and where.

This article talks about the economy in china.

This article outlines the corruption in Russia in this winter Olympics. 50 billion is invested in the project but the infrastructure in the city is still unfinished.

This article compares the incomes of different households in the US showing the increase percentage in wealthier incomes and the decreased percentage of more poor incomes based on the wealthier income increase. This shows money, which is scare, being unequally distributed throughout a nation.

This article talks about the negative externality of smoking. It tells that when adults smoke the bad side effects affect small innocent children.

This article talks about how the number of children submitted to hospital with asthma has decreased by 12% after smoking bans were put in place. This shows that the externality created by smoking is negative, it does not only affect the individual but the society as well therefore the social costs are greater than the private benefits. It shows how government intervention helps reduce the negative externalities.

In introducing the smoking free regulation, the british government has successfully reduced the number of admissions with children suffering from asthma attacks by 12%. In addition to showing that this government intervention has successfully reduced the negative externality caused by smoking cigarettes, this form of intervention has increased social awareness and also the willingness of many individuals to prefer "smoking free homes". The Article thus demonstrates that there has not only been a change in legislation, but also a change in the attitudes of the population, which will also have an effect on demand.

This article talks about costs of production, different possible ways of production and how those issues affect the price of the product. The increasing costs of production affect the supply curve to shift to the left which is bad and in this case they try to avoid it by trying to move the production to a different country.