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Sirius XM Radio was once saved the "January Effect" thanks to their merger several years ago. They experienced the benefits of economies of scale as a much larger organization, which brought the two previous companies back up in stock. However, they are still facing many challenges because economies of scale do not solve all problems. Some of the issues: "A low profit margin of 9.2 percent, and an astronomical Total/Debt to Equity of 492. Also, the rapid change in broadcasting technologies, and the Internet radio gaining ground, it is a matter of time before satellite-radio becomes obsolete. Satellite subscriptions are part of consumer spending that is usually negatively affected by a weak economy, consumers will not spend excessive money on this."

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.

This article discusses the rising problem in New Zealand, of rising prices on dairy products. We can see a distinction in this article between milk, on one hand, and on the other, butter and cheese. Milk in relatively inelastic, because it is a necessity for a healthy diet (especially for growing children), however milk and cheese are relatively elastic, because they are not as vital for a good diet, and their demand will likely drop a lot more than the demand for milk.