Skip to main content

Home/ Economics HL - Jacob Solomon's group - Year 1/ Group items tagged demand

Rss Feed Group items tagged

Desmond M

US gasoline demand dips on price, economy-MasterCard | Reuters - 2 views

  • retail gasoline demand fell last week from a year earlier as motorists drove less
  • due to economic uncertainty and elevated pump prices
  •  
    This article shows how resources are allocated in a free market by pointing out that both the quantity demanded and demand for gasoline fell. The quantity demanded fell because of a higher price; demand is falling because of uncertainty (which pushes the demand curve to the left). This shows allocative efficiency because if fewer people are working it make sense that fewer people are driving because these people no longer have to drive to work. Furthermore, these people may not have the ability to drive as much anymore because of their lower income.
Nadiya Safonova

Demand for Water Rises - 3 views

  •  
    This article adresses the issue of the increasing demand for water. In the readinig in Lesson 1 this week, we learnt about factors that affect demand, one of them was population. The world's population is increasing, therefore the demand for all resources is going up. This takes into account another factor that affects demand...the demand for other goods which are compliments, this article discusses agriculture. So with the growing population, not only will the demand for drinkng water increase, but also its demand will increase for agricultural purposes and many more.
  •  
    The demand for water is very unique because it isn't just in demand for one purpose, as you alluded to. We use it for drinking, but also washing, agriculture, industrial uses, etc. On top of all that, the market consists of all living things... making it very in demand at all times. Good choice of article!
Monique T

Language Line Plans a Roll-Up as Translation Demand Soars | Bloomberg - 0 views

  •  
    Due to the increase in different nationalities in the population of the US, there has been a huge increase in demand for translation services, especially in the medical field. Because of this non-price determinant of demand changing, the demand curve for translating services shifted to the right. As the curve shifted to the right, this means that the equilibrium price and quantity both increased. Since a market always moves toward equilibrium, in this case it meant supply had to increase as well. It is for these reasons that the company discussed in this article is looking to expand its services and acquire new companies - so the market will be back at equilibrium and the demand for translating services is met by the same supply.
Monique T

Silver has sweet appeal in India | Montreal Gazette - 0 views

  •  
    In India, silver is in high demand during the festive season of Diwali. This article discusses how in the case, the demand for silver is relatively inelastic, because the demand has stayed relatively the same while the price has increased around 30%. Since silver in sweets is a tradition, most people will continue to purchase edible silver leafs for Diwali even when the price increases, and so the demand for silver leafs is inelastic at this time of year, but when the festival is over, the demand will once again go down and become more elastic.
Lola Z

Online forecasting: And now, the gadget forecast | The Economist - 1 views

    • Lola Z
       
      Predictions of demand help to set the prices of goods. It is necessary to eliminate excess supply for companies to maximize their revenues.
  • In time this might force sellers to slash their margins and discount obsolete products languishing in inventories as buyers await the arrival of new versions. That said, retailers' prices are already at or near equilibrium.
    • Lola Z
       
      While the prices are at equilibrium, there is not an apparent excess supply or demand.
  • Airlines use all the computational power at their disposal to maximise their returns by setting fares based on current and predicted demand.
    • Lola Z
       
      Demand here acts as a signal to producers. Increase in demand will raise the market equilibrium price.
  •  
    This article talks about how forecasting demand influences the setting of prices. Producers use online tools to predict demand and hence set the prices. If generally consumers are confident with the products, the demand rises, and equilibrium prices will go up because the demand curve shifts to the right. When supply and demand are almost at equilibrium, the prices will tend to become more stable.
Katie Edwards

Without a price on carbon, oil will find a way - The Washington Post - 1 views

  •  
    This article talks about environmental sustainability, especially in the US, in terms of the carbon and oil situation. Hindering some paths of oil trade, may slow down the trade in the early stages, however there will be other paths since the international demand is so high right now. The price is steadily decreasing with the increased demand. The only ways to control this demand for oil that may be hurting our planet would be to tax the carbon (increasing the price), therefore decreasing demand.
Hannah S

Multiple equilibria - 3 views

  •  
    This article shows how demand for Italian bonds are falling even though prices are falling. This is because they are becoming far too low and until the yield falls again there will be a decrease in demand.
  • ...1 more comment...
  •  
    In the article the demand for Italian bonds is examined and is shown to deviate from the standard demand relations. As shown in the chart in the article, at a certain point when the price of Italian bonds increase, the demand falls. The author of this article dubs this anomaly as a zone of vulnerability.
  •  
    This article is about Italian Bonds. For the demand curve (and also the supply curve), there are multiple equilibria. This can be dangerous, because when the yields rise, de Italian debt may be unsustainable.
  •  
    Due to the unique shape of the demand curve there may be two or more places where the market is at equilibrium. This means that producers may be able to vary their prices more and still be able to get the highest possible profit from their products.
Katie Edwards

Business Line : Industry & Economy News : High gold imports hurting balance of payments... - 0 views

  •  
    A lot of movement in the reserve assets component of the financial account in India is causing stress for the balance fo payments. Demand for gold is increasing, and because of great returns on investment and the affinity for gold in India, demand is increasing. The determinants of demand are highly responsible for maintaining this instability in current account deficit and "stress on the system" for the Reserve Bank of India.
Lola Z

Emerging markets: One more such victory | The Economist - 0 views

  • grab a bit of extra demand for themselves by weakening their currencies.
    • Lola Z
       
      When the demand for currencies increases, there would be more spending.
    • Lola Z
       
      When the price drops, there will be more demand for the currencies.
    • Lola Z
       
      Imposing taxes and other restrictions on foreign purchases helps to increase the prices of imported goods, so as to decrease the level of demand for the foreign currencies.
  • ...3 more annotations...
  • it fought back by imposing taxes and other restrictions on foreign purchases of local securities.
    • Lola Z
       
      When the currency of one country is weakened, the prices of imported goods and services will rise. The demand for imported good(in this case, from China) is decreased. The Chinese manufacturers might want to decrease the amount of production.
  • Falling export orders was one of the complaints voiced by Chinese manufacturers in a preliminary survey of purchasing managers published by HSBC last week.
  •  
    This article states the relationship between currencies, which links to prices, and the demand for goods and services. While the currencies are weakened worldwide, the manufacturing industries are highly impacted. Therefore, the supply is lowered.
Katie Edwards

iPhone 4 on preorder at Sprint 'while supplies last' - CNET News - 3 views

  •  
    This article predicts the demand for the new iPhone 4S, given the available resources. The main service providers are ALWAYS in competition over the latest smart phones, and now Sprint has joined the battle with AT&T and Verizon. The price has been significantly lowered for the older versions of the phone, and the newest version is pretty expensive. Many people will be willing to pay the higher price because of the features and higher level of technology.
  •  
    By using the words "while supplies last", companies usually convince people that there is a bigger demand for their product than there is supply. This would actually influence demand, because people will think that everyone else wants this phone, and they won't be able to get it if they don't get it soon, so the demand may actually increase by saying this.
Adam C

Study highlights food price 'elasticity' - 1 views

  •  
    "The study looked at 'demand elasticities' in Australia for 15 food categories and is the most comprehensive ever done in the field. The degree to which a product's demand or supply reacts to a change in price is known as its 'elasticity'" This article highlights that out of 15 food groups studied, milk, bread, fresh fruit and fresh vegetables all have an inelastic demand. This is the opposite as to what i personally would have predicted, because with varying prices and what i assumed was a varying demand for fruits and vegetables, i thought that this could be an elastic demand. Some of the products with an elastic PED are All meat types, rice, margarine and preserved vegetables. This is interesting as it seems as though consumers would rather pay more to have food that can spoil, compared to food which can be stored or freezed.
Monique T

Outlook for U.S. Consumer Spending Brightens on Employment Gains | Bloomberg Businessweek - 1 views

  •  
    The aggregate demand in an economy is made up of the total spending on goods and services in a country, and one of the components of aggregate demand is consumption (consumer spending). This article outlines some reasons as to why consumer spending - consumption - is expected to increase in the US in the coming months.
Adam C

Mexico's 4Q Aggregate Demand Up 3.9% On Year - 0 views

  •  
    NASDAQ News: Mexico's 4Q Aggregate Demand Up 3.9% On Year This article discusses the increase in Aggregate Demand in Mexico in the last Quarter of 2011. Furthermore, because of this increase of AD, the GDP also rose.
Dan Call

Demand - 2 views

  •  
    This is an article from China earlier in the year, talking about how the demand for gold related items has grown rapidly over a short period of time. It is obviously very relevant to the topic this week as it talks about the markets demand for a scarce product, which will have a big impact on the product supply & demand curve.
Amy X

Oil drops on economic news and demand worries - 0 views

  •  
    This article shows that the oil prices drops. This is hurting the demand for energy.With all the economic worries, yet the oil price is still dropping it is a concern for economic melt down. Because demand is the quantity of a good that consumers are willing and able to purchase at a given price in a given time period, Oil drops will increase the amount of people buying the oil and yet one day they will raise again.
Mirren M

Palm Oil and the Economy - 0 views

  •  
    Basically what this article is trying to convey is the issue of the unstable price of palm oil in Malaysia and how it affects and is affected by the economy. The decease in demand of palm oil due to high stock and a festive season ending is assumed to increase due to other festive seasons starting therefore predictably showing a recovery trend.
  •  
    This is an example of the non-price determinant of demand that we learned about earlier, seasonal change. As different festive seasons approach, different demands change. Another example would be as some cultures celebrate Halloween at the end of October, the demand for pumpkins (and candy!) increases.
Mirren M

Mexico's 4Q Aggregate Demand Up 3.9% On Year - 1 views

  •  
    This article talks about how the Aggregate Demand increases in that year.
Adam C

Food Prices Set to Increase due to increasing Demand - 3 views

  •  
    This article explains that food prices are increasing, and will continue to increase because of the increasing demand in third world countries especially.
  •  
    I think that this is a very relevant article to the weeks topic. It covers in depth the potential issues that the world could face, in richer countries with a shortage of food, and poorer countries with farmers not being able to harvest in a way to supply enough food for the demand around the world. In the current world, starvation is a major issue, and the artcile illustartes this is a informative but serious manner.
Katrina D

Will Indigo's Kobo exit the U.S market? - 0 views

  •  
    This article is about the Canadian e-book company, Kobo, and their fight for sales against Amazon's product, Kindle. Kobo and Kindle are both very similar and have been competing against one another as 'substitutes' (as we've read about) for a long time. However, a new Kindle was just released that is priced even lower than the Kobo just in time for Christmas. Kobo's problem is that since Kindle has lowered their prices, they are sliding along their demand curve and thus increasing their demand. Kobo might not be able to afford lowering their prices much further, and so this might mean their whole demand curve will shift to the left because Kindle has better prices.
  •  
    I've never even heard of the Kobo and I live in Canada. I guess it doesn't have very much of a chance, especially with the new price competition.
Katrina D

Porter Airlines' edge - 0 views

  •  
    This Financial Post article talks about the successes of Porter Airlines, a small Canadian company that founded about 5 years ago. The company is currently moving through the price mechanism, but hasn't reached its second equilibrium yet. Its demand has increased by a lot recently (due to holding a monopoly at their island airport in Toronto, and higher profit margins per plane compared to other airlines), therefore shifting the curve to the right. However, since the Price has yet to increase, they are stuck at the 'middle stage' of the price mechanism where the demand is higher, but the price is still the same. We can predict from this that the prices will soon increase to make a higher profit with the growing demand, as we've seen in the textbook graphs.
1 - 20 of 73 Next › Last »
Showing 20 items per page