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Katie Edwards

NBN to drop CPI+ price mechanism (ITWire) - 0 views

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    The National Broadband Network Company (NBN) wanted to slowly reduce their internet connection prices to benefit consumers. However, any price mechanism they try is just increasing the CPI (Consumer Price Index). The CPI measures change in price level of consumer goods and services purchased by households; in this situation specifically internet providers. We all obviously need the internet, but many companies are struggling with correct pricing, a key component of their business. They are beginning new projects that need more money, which in turn causes a price hike. The article uses a lot of technological 'lingo' with statistics to back up plans of price comparison.
Lola Z

Diesel and heating oil prices hit 3-year high - New Brunswick - CBC News - 0 views

  • The Energy and Utilities Board set the maximum price for diesel at $1.44 cents per litre on Thursday morning.
  • Mike Beaudet, who operates Y Mow Lawn Care and Landscaping, said his Saint John-based company is being hurt by the rising cost of diesel fuel.
  • The Energy and Utilities Board set the maximum price for diesel at 143.5 cents per litre on Thursday, which includes HST and a transportation fee. By comparison, the energy regulator set the maximum gasoline price at 124.5 cents per litre.
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    This article shows an importance of price control on goods. Because of the high diesel and gas prices, people's life are being affected, in a negative way. First of all, people who own cars will fell the financial pinch, because now they spend a lot more on diesel. And lives will not keep running, in some contexts, without cars. And diesel is a fuel for heating too. Canada's winter is freezing cold, without heating, life will be miserable. To ensure people's welfare is protected, a price ceiling for diesel, in this case $1.44 cents per litre.
Monique T

Competition versus consistency | Global News - 0 views

  • Canadians pay double the market cost for milk
  • To protect those farmers, government started regulating the prices paid to farmers and controlling the amount of milk they could produce.
  • Canadian agriculture is one of the most protected aspects the national economy.
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  • protection benefits producers at the expense of consumers
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    A government sponsored agency currently controls the prices for dairy products in Canada. This was implemented because the government wanted to regulate the prices paid to dairy farmers and the amount of milk they could produce, in order to protect the farmers. However, problems have begun to arise because of these price controls, mostly due to the fact that the market price is much higher than it should be (which hurts consumers) and it is costing billions of dollars each year.
Monique T

Oil giants fined for price-fixing | Fin24 - 4 views

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    This article discusses how petroleum countries in South Africa were fined for price-fixing. This is an example of large firms who form a collusive oligopoly, because they are working together to agree on prices that will maximize their joint revenue. However, due to the fact that this means higher prices for consumers, it was an illegal agreement and so the firms are being fined.
Lola Z

BBC News - House prices lacking direction, says the Halifax - 0 views

  • House prices are "lacking genuine direction
  • It said there had been a mixed pattern of monthly changes in prices, but broad stability overall.
  • Greater uncertainty about economic and personal financial circumstances, together with pressure on householders' finances from weak earnings growth, higher inflation and increases in taxes, are likely to be constraining housing demand,"
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  • Prices in the three months to September were 0.1% higher than the previous three months. The report of static house prices from the Halifax's lending data chimes with the latest figures from the Nationwide. The building society said last week that prices were "treading water". The change in house prices have varied across the country However, the latest statistics on mortgage approvals from the Bank of England may suggest that sales funded by mortgage borrowing could pick up this autumn. It said the number of new mortgages approved, but not yet lent, for home buyers rose to 52,410 in August - its highest monthly level since December 2009.
  • Despite these pressures, low interest rates and a rise in employment over the past year, have been supporting the market."
    • Lola Z
       
      The stability of house prices increase the level of optimism of people in the housing industry. Therefore, people are increasing their demand for houses.
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    What really could be constraining the housing demand? is it really the different circumstances covering a householders finances due to weak earnings or higher inflation as suggested or the PRICE?!
Sebastian van Winkel

xbox live price hike a higher cost for microsoft - 3 views

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    This article is about the fact that microsoft increased the price of their xbox live. This is a "subscription" so that you can play online, with friends and people all around the world, and the price has increased. I don't think that less people will buy it though. It was $50, now it's $60. People who really want to play online were willing to pay $50 so i don't think these $10 will make a change.
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    In a way this makes microsoft out to be a bad comapny. It talks about how they have almost conned people into the purchase of the console, and how they can then determine the price of the xbox live. But, the customers are buying the console, in the knowledge that the price of the live play is not constant and can rise dependent on what microsoft feel is correct. Microsoft have tried to counter the price rise, with a reduced price in the common, years to try and deflect from the annual incraese in price that they are putting in place.
Tim O

Hilfiger's Pricing Power Shows Apparel Profit Holds Up - 2 views

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    This articles talks about the retailers are managing to increase their prices and pass on higher costs onto their customers. Its talks about how people think that increasing the price will not change the demand or quantity because consumers would accept the price increase because all retailers have the same cost structure and would start to pass the higher prices through. It also talks about that they can increase their prices because their is no substitute for their product. In general there is a economic growth within the world. Average prices in the apparel market rose more than 5 percent from January to May.
Katie Edwards

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

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    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.
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.
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    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.
Hannah S

Venezuela's economies - 0 views

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    The government has installed tight price controls as they have the world's highest inflation rate at the moment. They imposed these strict price controls on basic goods however, food prices have still risen up to 9 times as high as they were before. However, the price controls may be doing some good as Venezuela has been in the same situation before and after the price controls they had in place were lifted, prices rose from 40% to more than 100%.
Olachi Nwabuikwu

Ukraine: Gas deal means Europe security - UPI.com - 0 views

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    The rationing function ( a specific aspect in price mechanism) Prices serve to ration scarce resources when demand in a market outstrips supply. When there is a shortage of a product, the price is bid up - leaving only those with sufficient willingness and ability to pay with the effective demand necessary to purchase the product. In this case this countries are finidng a suitable way to solve the issues regarding issues concerning gas...
Katie Edwards

Gold price not in a bubble | China business news - 0 views

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    The China Business news reports about the increasing gold prices of China. The elasticity of the product is going to be incredibly low and inelastic because gold is so unique. Of course there are faux-gold substitues, however gold is the real deal. Having a shortage of gold, combined with economic uncertainty, means that the #3 gold producer's prices may continue to change.
Desmond M

Vancouver resale prices rise for 11th consecutive month: report - 0 views

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    This shows price elasticity, because despite the fact house prices keep rising, people keep buying them for eleven straight months.
Lola Z

Off With Their Heads! The Fantasy Google Monopoly - Forbes - 2 views

    • Lola Z
       
      Here it deals with the concept of menacing monopoly. Google isn't doing anything "evil", but it is just so comprehensive that everyone can't help to use it.
  • . Microsoft’s impressive growth of Bing in a mere two or so years shows that new competition in search can come at any time.
    • Lola Z
       
      There is actually competitor of Google. It is Microsoft's Bing.
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  • They rest on their laurels and do not innovate.
    • Lola Z
       
      If there is a monopoly in industry, consumers can be end up in disadvantage as the monopolist refuses to innovate and discourages other firms which can potentially innovate from entering the industry.
  • Google continues to innovate in many spheres of Internet and e-commerce activity, from mobile operating systems to books to social media.
    • Lola Z
       
      However, we can see that Google is innovating and giving consumers advantages. It is a benign monopoly.
  • Google search is a free product, supported by advertising. And that advertising is not priced by Google itself, rather through an auction among advertisers bidding on the use of search keywords. Google doesn’t control price, let alone raise prices.
    • Lola Z
       
      Here again, Google is shown to be a benign monopoly. Monopolists usually control the price freely, and raise the price as high as they can to earn profits. However, Google is free. Even if advertisers post commercials on it, the price is not set by Google.
  • Monopolists also have no incentive to reduce costs and increase efficiency, because the absence of competition assures them of selling products very profitably.
  • Google doesn’t act like a monopolist and shares none of the characteristics sheltering classic monopolists from competition. Its astounding success in Internet search is universally regarded as a consequence of better design, superior code, better products and plain old hard work.
  • an “evil” monopolist
  • Of course, it’s unlawful to monopolize a market, not to become a monopolist as a result of superior business acumen or execution.
Katie Edwards

White House Sidelines Christmas Tree 'Tax' | Fox News - 0 views

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    A tad early, but Christmas music will be coming on the radio next week! At least here in DC.. The article outlines a government plan to make a little extra revenue, and how that plan was so fiercely opposed. The tax would be imposed on the producers, given that they produce more than 500 trees a year, and in turn the producers would probably have to increase their prices. Since it is a specific tax with a fixed amount of $0.15 (not dependent on the price of the trees) it will shift the supply curve up. Even though the article states that the program "wouldn't have any impact on the final price consumers pay for their Christmas tree" - there would be an inevitable small impact at least in one retail area of the trees. Since there are so many consumers that will want Christmas trees, a tax would bring in a fair amount of money, as there are no substitutes for Christmas trees.
Adam C

Federal Milk Price Controls - 1 views

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    In this situation, The government has had milk price controls in place for over 70 years because during the time of the great depression, the government wanted to ensure that farmers stayed in business, while working class families were able to access milk at affordable prices. The actual issue that this article discusses is that of the still existent price controls, as they do not still have the same purpose as they used to.
Nadiya Safonova

The Referee: Are Sugar Price Controls Souring Job Creation? - 0 views

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    This article discusses the current issue in the United States when it comes to the price controls for sugar. Not only has it cost a lot of people their jobs, it is also eliminating the possibility for the growth of more jobs. And the problem isn't just with the jobs...the price control for sugar has caused an increase inprice in many goods that use to make their products...such as breakfast cereal....so even thought the price control is meant as a normative economic action...it may negatively impact the market.
Monique T

Occupation: From Wall Street to the university | CNN Finance - 0 views

  • average annual in-state tuition and fees at four-year public universities increased by 72% over the past decade
  • the rising cost of education
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    This article demonstrates how price is used to allocate resources in a free market, in the area of education. Since there aren't enough teachers and universities for every student across the world who wishes to go to university to go, this education must be allocated to people via price. Because of this, only people who can afford the education can go to school. The amount of people who can go to university is also regulated by admissions and marks, but it is an example of where price can affect who gets to make use of the resources.
Lucas G

Oil Retreat Prompts OPEC Price Debate - 0 views

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    This article is related to oil prices; which are very much connected to our demand for them and the amount that can be supplied. This particular article is in reference to lower oil prices; which would increase the demand for the oil.
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    It is so amazing to see, how if a country is having problems, then the price for oil is drastically changed. Also, if the price for oil decreases then more countries are willing to buy it and hence it circles around because then the supply becomes limited and the price for oil rises again.
Amy X

Starbucks Customers Feel Burned by Surprise Price Hikes. - 2 views

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    This article talks about that the increase in price for starbucks had an major impact on their costumers. Their costumer rate have decreased since the price increases, their price elastics was not calculated fairly, which had an impact on their service and costumers.
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