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Nowadays people are thinking that there is nothing to worry about in the oil industry of the world, but in economic terms, researchers are stating that the oil supply is becoming less elastic because new oil supplies come increasingly from unconventional oil. This is due to the fact that the new oil reserves that people are now exploiting are more expensive and they take much longer between the time the first well is drilled and when the first oil is produced

This article speaks about how as oil prices continue to rise, we must find a way to make oil prices more elastic.

It is about the changes in the PED of oil that is caused by the change in the sources.

The whiskey from a whiskey producer has run out, causing the elasticity to change for varying whiskey companies.

This article talks about high demands for water and dwindling supply. This is forcing government/companies to raise water prices so it would restrict usage of it. Like California where drought is causing high prices and low usage of water. Water has pretty neutral elasticity so government and businesses can make decisions capitalizing on its elasticity.

Gasoline prices fall at different rates in each U.S. State due to different price elasticities in various areas. Some of the states with the highest rates of falling prices have the highest availability of close substitutes due to lots of oil refineries in the area, meaning that demand for gasoline is more elastic there.

Thanks to falling oil prices, America's motorists are enjoying gasoline prices about 20 cents per gallon cheaper than this time last year. The big move has come since July, with prices down about 15% nationwide - or nearly 50 cents - to an average $3.14 a gallon, according to data from Gasbuddy.com (find your state on our map below). Naturally, this has a stimulus effect on the U.S. economy - saving us about $100 billion in annualized fuel costs, according to economist Ed Yardeni. That works out to about $300 in annual fuel savings for every American. Just in time for the holiday season.

The price of chocolate in the UK could almost triple as a result of an increase in the price in cocoa butter and other ingredients necessary to make this succulent and palatable treat.

Saudi arabia is a large supplier of raw oil. It plans to cut down oil production even more due to the continuos falling prices of oil (since mid-June 2014). Apparently Oil demand is lessening while supply remains strong, causing the prices to drop. According to the International Energy Agency, this will be a year of slow growth for the world's demand for oil.

As oil prices fall as much as 18%, global economy is booming. The purchasing power of the citizens are expected to rise. This steals around 0.5% of the national GDP from oil producers and gives it to consumers.

Currently in the global world, prices of oil are falling and demand is increasing. However prices of oil will stop fallng as there would be supply cuts in order to keep the market at equilibrium.

According to this article, there is a sharp increase in the price of beans used to make coffee drinks and therefore an increase in the coffee drinks themselves but it is not affecting the amount of people that still purchase the coffee. The article states that the people are very committed to their coffee drinking the substance in an almost 'ritualistic' manner. In this circumstance, the coffee can be thought of as having very inelastic demand.

The ubiquitous coffee chain is slashing prices on its packaged coffee by 10 percent - from $9.99 for 12 ounces to $8.99 a bag. Starbucks raked in $380 million from non-café sales last quarter - with a profit of about $2.55 per bag. The article indicates how in order to increase the quantity demanded for the baged coffee they will have to decrease its price.

In my opinion, this article is a great example what companies can do to keep up with the competition in the market and to increase the demand. It also shows how effective competition can be on even major companies such as Starbucks.

I think this is a great article to show how Starbucks is using price mechanism as a factor in competing against it's competition. It shows how a major company like Starbucks can become the market leader.

Setting prices can be a very challenging part of running a successful business. You want to be competitive, but you also need to be profitable if you want to survive for the long term. So how do you go about setting prices that'll help you do both?