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This article looks at the Elasticity of Demand and Supply for oil. The increased costs of the production and higher prices are not leading to a fall in demand, but instead a fall in the elasticity of demand.

This article fits in my opinion very well to the topic of elasticities. It deals with price elasticity of both supply and demand for oil. The author is concerned with the increasing inelasticity of supply: "reserves we're now exploiting are not only more expensive to develop, but they also take much longer between the time the first well is drilled and the when the first oil is produced". There's also a graph in the article which shows the constant fluctuations of both supply and demand for oil, and how the American oil supply struggles to adjust itself to American demand for oil.

This article addresses the changes that have occurred in the oil market over the past ten years. The author claims that changes in the demand of oil have increasingly been playing a role in maintaining the supply/demand balance. He argues that these changes will be burdensome to our economy unless the demand for oil is made more flexible. According to the article, there is not a shortage of oil. Today, due to rising oil prices, we are able to exploit oil reserves which were previously too expensive to exploit. Since these new oil reserves are more expensive to develop and take longer to access, the time it takes for oil supply to respond to changes in price is increasing as well. This means that "...the oil is becoming less elastic..." meaning that "a large change in price produces a small change in supply." In regards to the elasticity of demand, "the elasticity of oil reflects the options we have to using oil for our daily needs." Our ability to reduce oil consumption is fairly limited in the short term, but increases over the long term. However options for reducing oil consumption over any time period are often inconvenient. Reductions in demand due to high prices can be called demand destruction (a permanent move down the demand curve toward reduced demand) which can be detrimental to the economy. This is why people such as the media and politicians wish to have supply adapt to changes in demand instead. However, "there are also limits to the ability of oil supply to adjust." Oil is not easily accessible. Because oil supply has become less elastic, prices has had to become more volatile to force market adjustments. The author concludes by suggesting ways that the elasticity of oil demand can be increased and the pain of demand destruction decreased.

Chipotle's supply of avocados have reduced and because of this the price of their food has increased. This involves a non-price determinant which is because it became harder to obtain a product its price increased which also caused the price of another product to increase.

I also choose this article because it was a good article about supply and i also like to eat at chipotles

P3.01 Favorite Article. Temitopes article is my favorite article because its about chipotle. This article covers pretty much all the aspects that we have learned so far. It shows demand, reply and elasticity all because of how chipotle increased the price because of the low supply of avocado.

This article discusses global economic growth. For the past several years, aggregate GDP growth has been around 3-3.5% per year, with similar levels of inflation. Growth trends in major economies have slowed and a gap between global aggregate demand and supply for goods/services persists. There is an excess of global supply relative to global aggregate demand. The article claims that falling oil prices, low interest rates, and monetary accommodation are responses to the issue of excess supply.

Dairy prices have seen a drop lately because of high demand farmers increased the number of cows that produce milk, then again dairy is a primary product and as we learned this week, there is only so much a population can consume of a primary good, and too much supply with an un-proportional demand calls for a decrease in price in order to form another equilibrium.Although the PED for milk is inelastic, it's still a limited primary good and the supply of this having increased creates high PEs especially since season does not affect cows.

Photograph by Scott Olson/Getty Images When rain doesn't fall in Iowa, it's not just Des Moines that starts fretting. Food buyers from Addis Ababa to Beijing all are touched by the fate of the corn crop in the U.S., the world's breadbasket in an era when crop shortages mean riots.

This article is about how Iowa is experiencing a drought and its not only affecting them, but the rest of the world. Stock piles of corn dropped by 48 percent between march and june, and it has been the biggest drop since 1996. The farmers could only hope to preserve what little crops they have left. Another comment i would like to add is that this article relates to our topic because the farmers would have to increase the crops to $6.75 a bushel. Recently the price for have dropped so as the price decreases, so will the supply, and will result in higher demand.

With the lower prices less oil production falls. The lower prices also leads to less capital into the market and smaller companies with loans will struggle to pay back due to less revenue and profit. Some may have to declare bankruptcy. It is almost impossible to increase prices, because then other firms will offer cheaper oil and win your customers. The PED of oil is close to infinity and the XED between the oil of two different companies are a very high positive value

The article speaks about the decrease of shrinking food stockpiles (i.e. wheat) around the world resulting in an increase in demand for the good. Due to the slack of supply available for markets around the world the demand needed has increased. This is a result of multiple factors, such as weather. Overall, this is affecting the health of it's people and hindering trade.

This article speaks about the increase in demand for oranges because weather conditions have damaged the harvest of other fruit, such as apples and bananas. These weather conditions have caused the fruits to increase in price because of the lack of supply available. As a result oranges became the number one choice because of its lower price, so people were able to get more for their money. However, the wealth of the company producing the oranges hasn't been shared with the people due to the cost of transportation. They will see if these result will change depending on the next harvest.

Due to the bad weather in France, the quality of wheat used to make bread have been affected leading to an increase in the price of flour. Other factors that lead to the increase in prices include the Ukrainian crisis and the Russian ban on wheat exports. Because flour and wheat have many uses, the demand for these products will hardly be affected which makes them inelastic. Supply on the other hand will decrease because of the bad harvest faced by farmers.

Some key words "like determinants of price" of price which we learned in that week could have been used to explain why season affected the price of flour. With demand steadily increasing and supply diminishing Fonge could've talked about PED which she brought up but never used the term. In her comment she said wheat and flour being inelastic are not affected by any change in price so wheat has a low PED.

I have found this article suprisingly amusing as I am a chocolate lover. The article talks about the fact that the world demand for chocolate is outgrowing the cocoa beans available. Therefore the prices are rising dramatically, especially in Asia. The author assumes that by 2020 the prices will be extremely high, because the demand is becoming unsustainable. I believe that this is a great article to illustrate what I have learnt in the past chapter because it illustrates a real world situation where the price rises with the supply.

This article talks about how oil and how oil is becoming a very limited resource. The demand on this resource is high and has stayed that way. So because the price raised and the demand is still the same they have to supply a lot more equally everywhere.

This article speaks about the increase in demand for organic food. I find this article really interesting as it speaks about how tastes and preferences, one of the determinants for demand pushes for this increase of availabilty in organic products. As evidenced by the article , consumers are now more conscious of what they eat and are adopting a healthier lifestyle. This information is really beneficial as not only can the organic food industry increase its sales , but all other industry related to health and fitness such as production of vitamins , fitness programmes , exercise machines can also react to this trend and increase their supply to meet the consumer's demand. It is also mentioned in the article that organic tea and coffee were highly in demand in 2014. Hence coffe cafes such as Starbucks and Coffeebean can also increase their sales if they react to the health conscious trend by introducing organic beverages in their stores. To conclude , it is important for producers to study the trends of consumers so that they can react accordingly in order to increase profits or avoid losses.

One of the intellectually horrifying things about the response to economic crisis was the way many economists, some of them famous, reinvented old fallacies in the belief that they were saying something profound.

The global oil equilibrium has become extremely fragile and the price of oil has been rising without stopping. Which has been causing the supply to increase but the demand to decrease significantly. Throwing it off its equilibrium

This article is really interesting because oil is so important to us in so many ways. As with the example of the couple in Iowa, everything from transportation to feeding animals is affected by the changes in price. The smallest increase in price could cause a shift in equilibrium and could leave hundreds, if not thousands, of people facing shortages.

This article shows that a limited liability company named Linn Energy had their stocks lose value heavily, as well as a massive revenue decrease. This happened because of the oil bust, which was a massive decrease in demand for oil. Since the oil demand was becoming elastic due to the fact that it was a necessity for which alternative methods had been or started to be found (coal, solar energy, etc.), there was not much that could be done about the decrease in demand, which in turn took a toll on Linn Energy.

The oil bust definitely would cause a decrease in demand but it would also cause a decrease in supply because a bust is a "decrease in economic growth and production." I however have to say that u probably misunderstood the concept of elastic and inelastic. Oil demand would be inelastic because oil is a product that is necessary for a lot of human activities and since it is a necessity, demand would be inelastic and not elastic.

Several prominent articles this year that have taken a position against energy efficiency have attracted enough press attention to require formal refutations. But these articles all have something in common: an ideological belief that markets work best unconditionally, and therefore that a carbon pollution fee is the "first-best" economic solution to climate change.

In economy we always say food is always inelastic, diaries such as cheese, cheese, butter are considered necessity for people and the price should be inelastic with PED less than 1. As time is changing, the raise of price will cause less revenue, it's not as inelastic as it use to be. The government use to be the biggest clients and they have control over the elasticity of the product, which they aren't any more. There are also a lot more alternative to fluid milk as well. This is also relating to the FDA's view on butter, it use to be vilified and now it seem to be the best product available, people are buying butter, but as the price increase, they buy a little less. We see this change in restaurants as well, McDonald's are moving away from cheeseburger and pizza restaurant are putting less cheese on their product.

I think this shows how time also has an effect on elasticity. In the past dairy has been typically seen as an inelastic product but it is now viewed as an elastic product. There have also been growing amounts of substitutes to dairy products especially milk product substitutes.

This article looks into the reasons while dairy demand has become more elastic in recent years. In the past, demand for dairy products was fairly inelastic. However, that has changed. In the past, the US government purchased a large amount of dairy products which kept prices stable but that is no longer the case which has caused prices to destablize. Additionally, there are now many alternatives to fluid milk with more stable price. As a result, it has become the most elastic dairy product. Butter and cheese are less elastic. The article also mentions that restaurants and fast food restaurants drive the fluctuation in dairy demand.

Switzerland Considers Banning Volkswagen Diesel Car Sales Because there the scandal relating to the Volkswagen's pollution in diesel engines, Thomas Rohrbach, spokesman for the Swiss federal office of roadways decides he should ban all cars with diesel engine in the "Euro 5 emission category" including all VW cars. This could affect  180,000 unsold cars in the country

Investment firm, Bernstein, reaffirmed its Outperform rating on Apple, along with a price target of $135. The firm has noted the first weekend sales of the newest iPhone, which the company declared to surpass 13 million units. Its predecessor iPhone 6 managed to reach over 10 million sales volume in the opening weekend, which was a record back then.

This article, published by Fortune Magazine on October 3, 2015, describes how the decline in global commodity prices has led to economic problems in developing countries. Also, these falling prices have impacted sellers of valuable primary sector goods such as the Middle East's Gulf States, which supply oil to much of the world.