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Economies of scale is the increase in efficiency as a company gets bigger. In this case the economy of scale is the creation of larger shipping containers. The great thing about scales of economy is that it has lowered the production cost of products such as the creation of t- shirts for some companies. However as companies have more products to they needed bigger containers to transport their goods. As the supple of t- shirts increases the size of the ship that transports the goods needs to increase in size as well. Maersk lines , the world's biggest shipping container company has decided to increase the size of his ships. The company plans to build 20 ships with a capacity of carrying 18,000 twenty-foot equal units. The company does this out of efficeny in transportation and gas cost. The larger the ship the more it can carry and the less times the ship will have to travel back and forth to transport goods. The increase in ship size than is an example of the economies of scale when bigger = more efficient.

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.

When it comes to the reasons of deflation most of the economists see it as a monetary phenomenon which is affected by demand and supply. If the supply of money is more than demand then the value of money increases and prices go up as a consequence. When the supply of the products are higher than demand it results with the mass production which leads to the fall of prices. Some people believe that the deflation occurs because of the mass production and falling the aggregate level of demand. The biggest effect of deflation is unemployement. Deefletion is more serious and dfficult than inflation. To prevent deflation first is give an upward push to the aggreagte demand by increasing government spending or the second they can increase the money supply by decreasing cash reverse ratio.

When it comes to the deflation some of the economists believe that it is a monetary phenomenon which is affected by supply and demand. The reasons that leads to deflation are if supply of money is less than its demand than the value of money increases and the prices would go up. If the supply of the product is more tha its demand then it will lead to the mass production which the large amount of products will lead the prices to fall immidietly. The biggest effect of deflation is unempoyment. Deflation is more diffucult and serious than inflation. To prevent deflation first give an upward push to the aggregate demand by increasing government spending or the secong they can increase the money supply by decreasing cash reserve ratio.

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.

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This article refers to aggregate demand in 2010 and it states that India's fiscal and monetary policies had saved India from slipping onto another recession. Firstly the article states that India relies heavily on domestic demand because it cannot heavily rely on export and therefore they needed the measures to increase aggregate demand. This increase in aggregate demand, even though it has not been mentioned, can be assumed to shift the demand curve to the right and therefore more real output is demanded at every price level.

The Japanese automobile maker Nissan announced a couple years ago its plans for a new completely electric car, the Nissan Leaf. However, sales in the United States have been fairly low, only selling 10,000 of the cars in 2012. The reason for the small amount of sales is believed to be caused by its high price, due to an expensive and large battery back in the car, and the fact that the car has a small 80 mile range. In hopes to increase sales, the company is beginning to start production here in the United States. Producing the product closer to where it will be purchased will reduce production costs for the company, allowing it to decrease the price of the car and leading, hopefully, to an increase in demand.

Nissan is opening up a production plant in the U.S. to produce their car, the Leaf electric car. This is the first production plant. The short term is the building of the plant, which should decrease unit costs because they will no longer need to transport the cars to the U.S. The long term is the plan to create new technology to improve the car (battery, charging, etc.) and hopefully increase the demand, which could reduce unit costs even further. 

This article discusses the common trade-off between unemployment and inflation. In Europe, the Central Bank is expected to lower interest rates, a monetary policy strategy, in order to aid with the current issue of low inflation and high unemployment. Decreasing interest rates has the general effect of increasing Aggregate Demand in an economy, and according to the relationship between these two aspects of macroeconomics this increase is likely to increase inflation while also reduce unemployment as real output increases.

This article talked about how VW company decide to use one billion dollars to build LEED Platinum to make their car 25% cleaner. In the short run the production cost increased one billion. Since the car will get cleaner, the demand should increase. 

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

This article is interesting because it talks about the chain affect of low supply. The articles talks about how the global failure to harvest maize and soya is causing the supply of pig-feed to be low. This causes the price of pig feed to increase and makes it hard for farmers to continually purchase it. This isn't only affecting the farmers, but it is affecting the public. Farmers can't maintain healthy pigs so the supply of pork and ham decreases, which causes the price to increase. This means people aren't as willing to buy pork and ham. The competition between the large amounts of farmers also doesn't help the supply of pig-feed.

South Korea's terms of trades have increased for the 9th straight month. It has increased 2.7% since last year. Imports have declined faster than exports, which is why the terms of trade have increased.

Since our topic this week is on exchange rates i thought it would be a good time to address a topic of interest to me - virtual money. the bitcoin is accepted as a form of currency by many and from the article, we can deduce that it has a high exchange rate. A norwegian man had bout $27 worth of bitcoins which now translates to $886,000. this value and exchange rate is un-paramounted and extremely high but there are reasons for this. Bitcoins are now being used as a form of currency for illegal trading - forged documentation serving as an example. This increase in demand has lead to appreciation for the value however many countries are just starting to recognise the bitcoins currency value. many owners are just starting to accept bitcoins as a form of payment in the hopes that it can appreciate and they can sell it for more in the future. However in the article we get an understanding that the bitcoin fluctuates greatly. This detracts consumer confidence however the sheer idea of investing in virtual money is enticing to many, increasing the demand for the bitcoin.

This article speaks about a trending topic her in the US which is that of increasing the minimum wage from $7.50 to $9.00 or just around that. This would be a step in the right direction because it would increase the nation's overall per capita salary. What is also interesting is that the minimum wage in the united states is not adjusted to the rate of annual inflation (3%), only ten states are the wages adjusted. The bill in congress would include after a certain time that the wages start to be adjusted with inflation annually.

In March US only created 88,000 jobs, the lowest monthly gain since June. Economists were expecting an increase of 190,000 jobs. However, the unemployment slipped to 7.6%, which is below the expected 7.7%. That decline was not a good news because 7.6% is the result of 500l000 people dropped out of the labor. They still don't have jobs, but they are not considered as unemployed.

This article highlights the complex relationship between inflation and unemployment by pointing out the effect that each has on the well-being of individuals. A recent study showed that a whole 4 percent increase in inflation leads to the same amount of unhappiness as an only one percent increase in unemployment. Inflation and unemployment have always been considered inverses, in other words as one increases the other decreases. However the author of the article points out that the goal of central banks should be to keep unemployment as low as possible, instead of inflation, because of its widespread "misery" effect.

Although inflation makes people unhappy, it turns out that unemployment makes people unhappier. The country's "misery index" is extremely high.

This article talked about eBay increasing their revenue in double digit percentage and brought in 1.8 million$ last quarter. They were able to do so because in the long run they planned ahead and predicted that mobile phones would become a platform for commerce, so eBay used PayPal to make a lead in mobile payment, which gave them more market share. eBay was also experimenting with new app called eBay Now, which allows customers to buy goods from their phones from Macy's Target and Walgreens and have them delivered the same day. So we can see how important it is for a form to plan ahead in the long run: it decides the revenue for the firm in future.

The demand for the product increase by the main factor which is called appearance of the product.The designers by coming up with unique ideas make the products uniqe and highly desitred by making them interesting. The internet is a great access to determine which type of products are in need and highly desired also the eye pleasure of customers take a great role in designing.Therefore, if the designers increase demand of consumers and make more profit they would pay amount of money to make it better and make people to buy the product so the desing of the products in corporation with the internet access increase the competition between firms and they will all consider the appearance of their products that they sell and willn try to get the most of the profit.

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 Bloomberg article talked about how China is trying to raise the currency and make Yuan become a global currency. It also mentioned China used to peg Yuan on US dollar until 2005, then they changed the policy to manage Yuan in a certain range.

The article is concerned with the increasing currency value of the Yuan. In the past couple years, the value of the Yuan has increased significantly. This increase in the currencies value is due to the China opening its markets and showing leniency in trading. However, the Yuan though growing in strength has much to do before it becomes the world currency. It must be adaptable. The Chinese government has stated that they will open the market more by 2020. When the currency will replace US is unknown but it seems that it will surpass the US dollar with time. The article was eyeopening. I had never realized the Yuan was so strong. I will definitely look at the Yuan when i read economic news.