Economics HL - Jacob Solomon's group - Year 1

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.

The use of normal cars creates a negative externality of consumption; through the air pollution and noise pollution that is created. The intention to launch an electric car share program in Paris reduces this negative externality; as electric cars do not make any noise and do not (directly) cause air pollution.

This artcile is discussing Sony, one of the largest technology brands on the market, and how in the modern day, average customers are becoming more savvy and wait for the drop in price of such consoles as the PS3 before purchasing the product, as a result of price elasticity

This particular article relates soda to alcohol and cigarettes whereby consumption of these goods are bad for health but even after numerous ways to decrease consumption, the determinant having the biggest impact on consumption was proven to be the price of sodas.

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.

This article demonstrates the scarcity facing the food supply of people in North Korea. Although we would normally expect food scarcity because of, for example, a natural disaster, the food scarcity experienced by the people in North Korea is not only because of a lack of food being made... It is scarce because the government is preventing the supply of food from getting to the people, creating a greater demand than supply. Food is a limited resource, but the problem of scarcity in this part of the world is because of political reasons in addition to natural.

It's really disturbing to read this. When we're working towards satisfying as many wants as we have, some people don't even get what they need.

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.

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.

When countries form a free-trade deal, it allows the imports and exports between the countries to grow, because there are less trade restrictions such as tariffs. This means that, with import prices decreasing, aggregate supply in Canada will increase.

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!

The article discusses a pumpkin shortage due to a natural disaster, hurricane Irene, that has destroyed crops such as these pumpkins, in the US. It demonstrates scarcity since the quantity of the resource provided is not meeting the wants of people for the product. For one, prices are rising sky high as a result, and some people who would be willing to buy cannot even get the product.

oh no! I'm gonna need my jack-o-lantern!

I never even thought about how Irene might have affecting something so many of us take for granted seasonally. The hurricane created a sort of chain reaction, ending with some very lame Halloween decorations :( If there are a shortage of pumpkins this year, I wonder if the lack of seeds will mean that future seasons will have low yieldings of pumpkins?

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.

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.

This shows that if oil was an elastic product then the prices for it wouldn't rise so much, but because it is a necessity, people are willing to pay more for it and they have to put up with the rise in prices.

This article discusses the problems of unemployment around the world - while unemployment is leveling off in the United States, it continues to increase in the Euro Zone, which is suffering from economic problems.

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.

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.

This short article relates to the concept of natural monopolies; as are found in utilities such as water, electricity and gas providers. This article complains at the fact that Avista charges a high quantity for gas; and being a monopoly; it gets away with it.

This short article relates to the concept of natural monopolies; as are found in utilities such as water, electricity and gas providers. This article complains at the fact that Avista charges a high quantity for gas; and being a monopoly; it gets away with it.

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.

This artcile talks about the impacts on the patients and hospitals in general of China as price controls are being implemented, and the overall prices of the drugs for patients is soaring.

Have you ever wondered if the cost of the iPhone or other electronics actually relflects how much money it takes to produce them...this article explains it :)

This article talks about how the cost of heating homes are impacting the people of Cardiff - how it has affected their budget and how suppliers are still continuing to raise prices. Therefore, price control needed to be implemented so the situation goes back to being under control. "People shouldn't have to choose between whether to eat or heat but many do."