Group items tagged

This article talks about an earthquake and the lack of water available.This article essentially talks about how the demand for water was high but the price remained therefore people with more use for the water werent able to get the resource; it; some needed it for baby formula whilst others for cleaning dishes. The writer argues that if the price of the water was raised, as it was scarce, then people with higher priorities wouldn't mind spending the extra money. Economist Eric Cramption then dismisses an argument against price allocating resources; the poor would get poorer. . 

Zimbabwe has set extremely low price controls for many primary products, and this has caused many people to go out of business. People are losing a lot of money, but the government is refusing to let the prices go higher. The government is making up for the loss by printing more money, which is causing price inflation. The people are upset, but with the government making sure that the prices are low by threatening to close businesses, there is nothing the people can do about it.

Zimbabwe government is controlling food price by physically forcing merchants and shop keepers to low their price down, other wise will be beaten. It is actually not going to work and can not last for long time. Producers can not supply the goods at a price that allows retailers to make a profit. The inflation of this country also reached the world's highest level. This article showed that price control has to be realistic otherwise will harm the economy.

This article showed the relation between the price and demand. The oil companies need guar gum powder for fracking to get oil, this increase the demand of guar and the guar price rised up. In our textbook, the relationship is a little bit different. Our textbook said as the price increase the demand of the product will increase, where as in this article as the demand increase the price will increase. This article showed me the mutual relation between the price and the demand.

Prices of petroleum products are rising which has led to an increase in the prices of daily-use items. Pakistan's citizens are demanding their government to review its pricing mechanism. Instead of having a weekly review, consumers want the government to switch back to the monthly price review. This article shows an imbalance in the price rationing of petroleum.

Not only does this article fit well with the topic of price mechanisms, but it also is a great example of the effects that products can have on an entire economy. Petroleum is not just used to fuel cars, it is used to manufacture all sorts of other products. That aside, every company, one way or another, is affected by the price of petroleum, and when the price goes up, the manufacturers and retailers pass the increase in transportation costs on to the consumer, who indirectly pays for the high price of petroleum.

Indian government has announced that 60% of entire domestic pharma market will be under official price control. The policies of National Pharmaceuticals Pricing Policy will cover 348 products on the 2005 National List of Essential Medicines (NELM) plus others added to the newly-updated List (NELM-2011), which includes some 450 products.The long-awaited draft policy would also change the way prices of controlled products are regulated. Under the current Drug Price Control Order (DPCO), prices are based on market share, but the government's draft policy proposes changing to a system of setting a ceiling on the prices of formulations based on the Weighted Average Price of the leading three brands.

This article is related to the holy month of ramadan. In the holt month or Ramadan, a lot of households do indeed cook more than they need and distribute the excess food to poor people. therefore this increase in demand may cause companies to hike the prices of essential food items such as vegetables so the UAE government is looking to create a mechanism for controlling the prices of essential foods, by probably placing a maximum price

I also worked on this topic as my part of my IA commentary. This article from the NY times explains the rising power of certain beer companies that have acquired a large amount of the market. This, according to the article, has created a sort of oligopoly. Monopolies and oligopolies are severely watched by the government because they do not want only a few companies to dominate the market. In the article they explain that these oligopolies are testing the presidents tolerance.

The article is talking about some giant beer companies that merged together but had some issues with price decisions because the prices were too high for consumers and they were not able to afford the prices. Even though it was hard to agree for each company the high prices encouraged them for competition and the industry got better. On the other hand the rising prices also pushed companies for oligopoly because as they come together pricing strategies, the division of labour would be easier and more effective.

In UK shop prices rose at the fastest pace since December as the cost of non-food products increased for the first time for a year. In overall shop price inflation increased 1.4% from 1.1% in March. Food price inflation remained high 3.5 %. It is caused more pressure on cash-strapped consumers.Prices rose across health and beauty products mostly. The rate of year-on-year price deflation in shoes, footwear and electrical goods slowed to 2.2% from 4.2% in February.Total inflation is at its highest rate which is reflecting that many retailers went into the new year with less stock to clear so discounting is less extensive compared with 2012.

This article talks about the oil price, how experts sets the oil price that there won't be a shortage problem in future. People they would prefer low prices but consumers firstly think of the benefit that they get from this business and also about the development of oil producing, for that they need more money that causes growth of prices. That's why they are trying to find an equilibrium price of oil, which will comply everyone's requirements.

This is an interesting article because it is a great example of justified price controls. A panel was chosen to go through and examine what exactly should be controlled, and it shows that price controls, if implemented correctly, can be extremely beneficial. 

Obama has mentioned that he will set a price control on the college education. With the increased price of universities and colleges, students are finding it increasingly more difficult to attend college. Therefore Obama has set out to confront this problem. He proposed to make permanent the American Opportunity tax credit. Colleges have to either lower their tuition rate or accept the fact that with higher tuition rates they will have lower funding from the governments.

Ministry of Domestic Trade, Cooperatives and Consumerism director Wan Uzir of Malaysia announced (on November 8) 14 items that are price controlled by the government but are recommended to be sold at a price even lower than the maximum set by the government. These price controls, on items such as chicken and potatoes, are in anticipation of the nearing Holiday, Deepavali (Diwali) on November 13, mainly to protect consumers from potentially unmanageable prices.

The Congress is preparing to cancel subsidy for corn ethanol and the tax break for oil companies. The tax credit deepened the budget deficit. It also raised corn price and food price as farmers started to replace other crops with corn. However the House of Representatives won't pass any law that would end the subsidy because their paymasters want the subsidy to keep the demand up.

This article talks about the organic milk shortages, that farmers can't buy enough food to feed their caws because the price for their food has been increased, as a result they give less nutrition to their caws and get less milk. But demand for organic milk is still high and in the article they will some suggestions how to solve that problem.

The demand for organic milk is greater than supply because the production cost of creating organic milk is greater than the revenue. The reason for the shortage is that the cost of organic grain and hay has gone up but the price farmers receive for milk has not. As a result farmers buy less grain and hay which lowers the production of milk. The low supply of organic milk than in turn increases the overall price. The solution for this issue would be to increase the price of income the farmers would receive for their milk. If the solution were applied, the farmers would pay more for organic grain and more milk would be produced and consumers would be satisfied.

In the article the prices of coal change by Coal Ministry under CIL s price mechanism. As the result of that the prices went downwards. The new pricing mechanism was based on Gross Calorific Value which was more wşth the fossil fuel and more safe for people. The previous one was based on Useful Heat Value coal which was full of ash and moisture content.

The annual "Student Price Index" released yesterday by the Kansas State Economics Club shows that the prices for common goods purchased by students has increased by about 3.7% in the past year. However, not all goods have been affected equally. For example, prices for textbooks have actually decreased while the prices for internet services have risen 8%. These differences are due to primarily to elasticity. Daniel Kuester, the director of undergraduate economics at the university, explains that for products like pizza, the availability of many substitutes makes the good elastic, making it less likely to be affected by inflation.

This article discusses how oil is becoming an inelastic good. Although people can arrange their lives to reduce their consumption of oil, quickly there comes a point where it is not possible to purchase a smaller amount of oil. Oil would definitely be considered an essential good.

The article evaluates elasticity in terms of oil supply and demand. it states that there are still untapped oil reserves which are more expensive to obtain and requires more time. As a result, oil is becoming less elastic. it talks of possible ways of reducing oil consumption such as public transport or getting a more fuel efficient vehicle which is unlikely as it is expensive. it also evaluates the the elasticity of supply. it talks off how suppliers need a minimum price/barrel in order to keep a balanced budget so suppliers are reluctant in increasing supply in order to reduced the prices. It provides data over a 10year time period which analyses the oil consumption and supply of oil in terms of different uses and change in costs. It also relates it to the recession stating that job loss has lead to less people commuting decreasing demand and increasing price

The article is about in which countries what type of products are more elastic and inelastic. For example, milk bread has inelastic demand because even though the prices change people will still buy them to survive. Otherwise, meat, chicken has inelastic demand because people might not afford the prices if they change. Especially USA, Japan, Canada has the most inelastic demand for milk, bread and vegetables when you compare them with other nations.

In this article we can read about price and demand elasticity of food, it's written that demand for some product such as milk, bread, fresh fruit and vegetables is not elastic, because these product are part of diet food so that's why the change in price won't affect demand very much. However other it can affect the demand of some other that not suits to diet food very much.

 Sony has managed to get rid of the competing technology,the HD DVD.   Instead of an increase gain in market share,Sony has had a decrease in  market share. The reason is that people are savvy to the pricing strategies that vendors use. They understand that with no competition, Sony will eventually have to lower its own price.  In taking out competition Sony has caused a decline in its own products.

As a result of refinery troubles in Southern California, gas prices have hit record highs (some parts of L.A. reaching 5 dollars for a gallon of gas). The demand for gas remains constant (people in L.A. have a strange affinity with their cars) however, the demand has dropped around 2.5%. People have been griping about the price increases, but as people cannot live without their cars, they have no choice but to deal with it. The supply is limited and therefore the price increases.