Economics IB Allen Perry

The Australia federal government announced plans to increase the tax on fuel despite not having parliamentary approval for the measure. Due to the rise of tax on fuel, the price of fuel tends to increase next month. The Minister claims that the effect on petrol prices would be "modest". But the impact on our capacity to build a stronger more prosperous economy will be significant. The measure is expected to expected to raise the government $2.2 billion over four years and $19 billion over the next decade.

This article is about the new tax on soda in Berkeley, California. Apparently soda is now being taxed for 1c per ounce of soda. This tax (measure D) will levy a 1-cent-per-ounce tax on sodas and sugary drinks, and the money will go to the city's general fund. This measure wasn't intended to create funds for a specific purpose therefore it only needed the majority vote for it to pass. On the other hand, san francisco had a specific use for these excised taxes so it needed 2/3 vote for their proposition to pass (prop E). Furthermore, the excised tax for San Francisco would have been 2c per ounce of soda. This tax has been predicted to impact low income households since soda is predominantly consumed by them. This then leads to an overall increase in grocery bills, since the taxes aren't just levied on soda brands but also on grocery stores. This means that grocery stores may raise overall prices (of all goods) to pay the tax on soda.

The rapid growth of countries like China has led to growth in the size of the markets for many luxuries. With incomes rising in emerging countries, demand for many the luxuries has been growing. However, in the past year, due to the recession in China and Europe, Prada expects its growth in sales to January 2015 will be 'low single-digit' - less than the 7% figure recorded for the last financial year.

here is an article about how the government in malta is puttiing excise tax on petrol. because peytrol and disel were becoming too expensive, and they needed a price reduce. but some people are arguing that it still isnt low enought.

This article is about the Obamacare subsidies given to the people who are not aware of their eligibilities to healthcare insurances. Subsidies are not only given to firms; but are sometimes available for citizens and this is a very recent example for it- although ironically the citizens are not aware of this convenience.

Ciggarette is a good which is competitive, since it is inelastic Wallstreet is worried about because of the price rised, there can be a probable decrease in demand even though it is addictive.

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

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.

This article is about how income in India has become one of the fastest growing economies in the world and how the household income has more than doubled since 1985. This article further discusses how this rise in income has changed consumption patterns.

Due to the decrease in oil prices and other essential goods, people are spending more which is making the us economy grow briskly.

This is an article that explains what we've learned in the past few weeks, that necessities are inelastic compared to luxurious products. Furthermore it gives information about the customer types and even explains a strategy that can be used when consumer income elasticity is high. It also mentions that products have a "life cycle" and that this cycle is also a determinant in consumer behavior. Lastly, it adds that best method to determine income elasticity is to do research surveys.

This article talks about how large grocery retailers have had to postpone opening new supermarkets and might have to close down existing ones because of a decline in sales and decrease in income. Because general consumer income is spent less on food and increasingly on other goods like clothing, the quantity of food demanded by the public is going down and this fractional decrease is affecting the retailers.

This article focuses on the effect of skyrocketing grocery goods prices and different supermarket chains or grocery stores' customers' reactions to the increment of prices. It makes a clear comparison between stores with loyal customers who don't mind the changes and customers with low budget and these two groups' priorities and choices.

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.

Interesting article. Talks about how if one would put a price on carbon or a tax on carbon emissions we would essentially cut down or discourage pollution.

This is indeed an interesting article, climate change is definitely changing our lives and governments are trying to control the impact of climate change through carbon taxation.

The iPhone 6's demand continues to increase everyday, outstripping the supply it can provide to the people. This is a great example on how price mechanism works in our real world, where people are more attracted towards luxury products and would do anything to get it.

As I read ,Iphone 6 became a new hit in the World and it will continue to be.Regardless of its price people are tent to buy it all around the world.Demand is higher than as Apple expected .Changes in prices influence the production of goods and services and the demand for them so production will be more but whether they change the price or not there won't be a decreasing change on sales of Iphone6 which is an example of price mechanism

Iphone 6 has become the preferred product for mobile consumer users and seen as a sign of prestige as well as satisfaction derived from getting the latest product. Preference is a factor that influences demand of a product. Therefore the demand for Iphone 6 will continue to remain high in the market irrespective of change in price till consumers preference changes.

This artcicle talks about the supply and demand for the Nintendo Wii. The suppliers did not think that the demand for this procuct would have been high. Therefore they procuded a low supply of Wii's.

good article about a company messing up in a good way sort of. this is very intersting especilly since the company it talks about is pretty big.

This article disscusses how Hershey products fell and haven't met the expectation since it's the season of Halloween and Kit Kat and Reese's exceeded the candy maker expectation. However to reduce impact of volume of elasticty will work closely with retail costumers and insure good advertisment and promotion is being made.

This is a great article! It shows how Hershey has chosen to take in other factors of business such as marketing and advertising to improve it's demand in it's products.

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.