IB Econ HL Section B

This article reports on the closing of a high-end steakhouse in Vancouver. The demand for expensive food has dropped as incomes have faller due to the recession. This means that this sort of fancy restaurant has a positive income elasticity. As income falls, demand falls.

This article refers to the dilemma of producing energy but through wasting a huge amount of resources, in this case electricity vs. water. The Solar Millenium, a German developer, would provide hundred of jobs and generate electricity, but this would imply the use of 1.3 billion gallons of water a year, 20 percent of the water available to the town.

In this article, the relation between supply and price is being referred to, as Opec is being criticized for lowering the price of crude oil although it has announced the largest supply cut in its history. The article thus criticizes Opec, and in short accuses it of not using price as help on allocating crude oil.

Japanese woman were one the of "the world's biggest spender on luxury product" and they would happily part with a month's rent or even salary for designers handbangs, scarfs, clothes, and shoes. However, the economic downtown caused by the worldwide crisis has brought wages into a 15 months fall and unemployment rate to exceed 5%. Luxury brands are goods that are heavily effected by the overall health of the economy and the wages of the consumers

In this article New York City's health commissioner believes that the demand for cigarettes is price elastic and that with a high enough increase in price, there will be a large decrease in demand. This is contrary to the the notion that addictive goods have inelastic price elasticity of demand.

This article talks about the recent food crisis and its origins. It describes the various ways in which demand has increased, and thus how prices have increased. It also talks about how the market should respond to lower prices.

This article talks about Ford Motor's involvement in the auto market. The article cites statistics showing that sales are falling, which means that the demand is elastic. The attempt to sell cars for a low price in India also shows that the demand for cars is elastic, as people are not willing to pay a high price for them.

This article is about the opportunity cost of producing biofuels. When the amount of water needed to irrigate crops is factored in the average mileage is 50 gallons of water a mile.

Because the US citizens are not using natural gas, the Energy Information Administratino reported that the gas is nearing the US storage capacity. The price for natural gas is severely dropping and may drop even more. However, it is assumed that the price for natural gas to spring back as winter approaches. Because of such cheap price, people will choose to use natural gas in the coming winter.

This article from the Ennhar Online shows the relative inelasticity of demand for cigarettes and tobacco in Algeria. The government has increased the price of cigarettes, tobacco and chewing tobacco several times, as well as imposing a hefty tax on importing and producing tobacco related goods. However, this has had little effect on the people of Algeria, who continue to smoke despite increasing prices. Because tobacco is an addictive substance, this has caused the PED to be inelastic.

The article discusses a proposal by the Scottish government to impose a minimum price on alcohol in order to reduce the 'harmful effects of drinking'. Estimates conclude that this would save Scotland 950 million pounds over 10 years. Currently there is no concrete plan for a minimum price but the government is proposing an extra 40p per unit of alcohol.

In this article BBC special correspondent Tom Feilden 'looks at the reasons why the era of cheap food is coming to an end'. The article describes how the prices of basic foodstuffs around the world are rising at a rapid rate. It explains that a population boom and economic growth created a new middle class which drastically increased food consumption. This excess demand over supply has therefore hiked up food prices considerably.

This article from the BBC exposes the rate at which oil is running out, and the consequences it will have on society. The implication is that the market price of oil is far cheaper than its real value, and this means that consumption is rapidly exceeding production. The article questions whether oil rationing should be imposed in order to preserve this scarce resource.

Australia wants to limit foreign stakes in big mining companies. These limits are aimed mostly at China, after several political and business arguments. These limits are a form of price control, as the Australian government is intervening in the market.

Consumer prices in Japan have dropped by 2.4% in August. This was due to lower petrol and energy costs, as well as decreased demand. The central bank says that low interest rates and stimulus packages will prevent deflation. This article shows the importance of prices in a country's economy.

Nepal is currently suffering a shortage of banknotes, resulting in some businesses being unable to pay employees. The government hopes to solve the issue by introducing old banknotes that were never circulated. This shortage is an example of scarcity as applied to currency.

After G20 summit discussing the aftermath and the resolution for the ecnomic crisis that left great impact in the world market, countries agreed to establish tighter regulations over financial institutions and made advices for specific countries for improvement. For example, Japan and China were encouraged to reduce their dependence on exports by promoting products domestically. Quotas like these are examples of price controls in a world wide scale.

Japan has fought off the hard economic struggles after WWII, and seemed to finally achieve economic stability after twenty years of hardship........until the economic crisis hit worldwide and paradise lost. Wages began to fall at the nation-level even before the crisis hit Japan because the workforce shifted from well-paid elderlies to underpaid yougnsters. Because of this, Japanese consumerism seems to have changed - people are suddenly more thrifty. The firms have to fight for a better deal against other firms under the competition.

Scientists have predicted that fossil fuel will completely deplete in the naer future of mankind because of the human's abusive use and the attachment to fossil fuels. Oils are now considered valuable and SCARCE. However, new oil basins have been found in several parts of the world. Being said, oil may not have been scarce as it was thought to be