IB Economics B

Rob Dickins, former major-label boss, has sugested to slash the price of CDs to 1 puond each so as to increase the damnd for that product. The main competition of the CD industry is music piracy and downloading it for free from the internet. Cutting down the price of CDs is not the solution because, however small the price might be, it would still be more expensive than downloading it for free. Secondly, reducing the price so drastically for such a product, other than it being an insult to producers and musicians, means a very high production cost, for very low retribution.

This article is an overview of the supply and demand of natural gas. It describes instances where natural gas has increased demand such as in the winter when it is cold. It also refers to the future projections of the natural gas demand.

This article is about how the demand for gold has incresed in the past decade, and how people take this chance to get more gold because the price is decreasing.

The undervalued and overvalued currencies are having a war against each other - each struggling to either lower or maintain their value. Since the worth of the currency strongly affects exports, this phenomenon is quite crucial to our lives. The article presents the issue through the prices of Big Macs.

This article explains how demand for financial assets is different from that of regular goods.

This article discusses the demand for diamonds in the past few years and how the demand for diamonds is finally picking up after several years of low demand. This article talks about how people couldn't afford diamonds as much with the economic meltdown so demand went down.

The article discusses the price mechanism as a signal for allocation of resources in two markets - consumers goods and stock market. A rational perspective would assume that as demand rises, suppliers are attracted to the particular product as they see incentive for profit and thus supply extends and prices rise. This then has the opposite effect as since prices are high, demand contracts. This self-correcting mechanism is in place for the market of consumer goods, as the article discusses. Eventually, price will return to equilibrium. However, in the case of stocks, as prices of stocks rise, investors are more attracted to the stock as they see incentive for capital gain. Thus demand extends, contrary to the rational model observed in the market for consumer goods. Nevertheless, the article provides supports the notion that as demand rises, prices rise and more of that particular good/service is supplied to the market.

Pension costs and health-care costs are increasing with the increased demand for pensions and health care.

This article is about the gap between China's imports and exports which narrowed in September.

Andrei Geim and Konstantin Novoselov won the nobel prize for their researches on graphene. Graphene is a new material that derives from Graphite (the inside of pencils) and it turns out to be the best heat conductor available and to be able to conduct electricity as fast as copper. Its uses are almost infinte and they predict that it might take the place of silicon for faster computers in the future.\nHaving to deal with scarcity people find clever ways to go about with what is available to them, and often by inventing new things, in this case *Graphene*, we can make better use of resources and avoid wastes of other, less efficent, materials.

This article talks about an increase in the price of gasoline due to a rally in the prices of oil and corn which are directedly involved in the making of gasoline. It also talks about how this will change because people are now starting to hold on to their money.

This article talks about how pricing helps Apple, a tech corporation, to sell more products and become the no. 1 tech company in US by market capitalization.

In my opinion this shows how resources are coming to an end as the raw material´s prices are rising

This article is about the change in prices in "Walmart" market over last year. This is the chain of markets in the United States, which has changed prices many times over last year and this article simply talks about it.

This article provides an interesting perspective into the fluctuation in price levels between different domestic routes in the US. As demand for a particular route goes up, so does price of airfare that serves that route. As a result, an increasing number of airlines allocate resources to serve that route, and as a result of competitive pressure, prices go down. This results in volatility of prices, and a constant shift in the allocation of resources based on price levels between routes. For instance, the route between Atlanta (ATL) to Las Vegas (LAS) is said to have 2,472,916 price changes. This reflects upon the popularity of this route for domestic travel within the US.

A lack of critical resources proved disastrous as the U.S. Forest Service was unable to stop a fire before it destroyed hundreds of buildings near Los Angeles. The high prices of equipment and such caused the station to purchase less of it, resulting in a disaster.

This website talks about how The Invisible Hand, a theory created by Adam Smith, decides the prices of various resources in a free market.

its very important to take into consideration that water is scares resource as in many areas such as in mexico people suffer from fresh water shortages, here is a second website that BBc talks about water crises and in addition we should look at mexico water crises as they overexegurate in using water for iriigation many palces in cities are lacking water. its very interesting read please and become more green to save our planet :D http://www.mexconnect.com/articles/1497-water-crisis-availability-of-water-in-mexico

Many people, especially people who can afford oil at the moment, complain of it being too expensive at $40 a barrel. However, economists say this is nothing compared to oil's future price. Some even say it is too cheap since its demand has increased dramatically while it can only be provided in a certain amount. By raising its price, it could lower the demand. At the Association for the Study of Peak Oil 's conference in Berlin, it was discussed about the consequences of oil's rising prices.

I agree with you. It is true many people do not value what they have. Most of the resources are consumed at the rich countries, and we still want more. Instead you´ll never hear a man who just have enough to feed his family complaining because rice is 6 cents more expensive, if he still can afford it.... sometimes we do not see it, but we are really ungrteful.

i agree with you as well Constance but when the price for oil will increase it will also cause a chain reaction that would increase prices on products as well. do you get my point ? ? if a person needs oil he wont be able to live without it lets take an example i am a villager who has a big valley where i gather potatoes like 20 tons. i need to transport them so when transportation price will increase i will have to increase price on potato . so you see what i mean it a little bit miscellaneous point

In my opinion this is the most basic example of the scarcity of resources. Resources are not enough for meeting, not human wants, they do not even meet human needs