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Youth unemployment hit a 33-year high in June, according to the latest data from the Italian national statistics office, signaling the troubled country and the wider eurozone area could be on the verge of economic collapse. It's the disappointing unemployment rate that indicates the economic collapse would be imminent.

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.

("This market is trying to...) In a chat with ET Now, Anup Maheshwari, Head of Equities and Corporate strategy, DSP BlackRock Investment Managers Pvt Ltd, shares his views on the market and certain sectors.

This article relates to the topic about Market Equilibrium because firms are ready to fic prices at where they hope will be the market equilibrium. Price mechanism is important because the article mentions that prices aree high which means that if prices are high then th eproducers will incentive to create more goods.

This article discusses a topic the book made fun of in this week's chapters. When describing inflation, the book makes a snarky remark about how a fraction change in percentage of unemployment is considered "news". There are a lot of uncertainties concerning unemployment, because it is difficult to measure the amount of unemployed people, due to different definitions of unemployment and because of hidden unemployment, yet these news agencies give values with such high accuracy. The article does describe how unemployment has decreased in various parts of Europe, which can be linked with higher living standards for some.

GDP growth starts here. I chose this article because of one of the TOK questions we had this week it brings up education. Well this article talks about how education can lead to economic growth in many different ways. It doesn't just build up one sector it affects multiple, an interview has shown that people will need more than a high school education if they want to find a suitable job. If education standards increase so do income, technology , jobs all leading to an economic growth and I feel that this is actually even better because since it creates new things there is not chance of people losing jobs so employment is not at risk and as for inflation it will increase in the short run but level off.This research was done by Wössmann.

Overwhelmingly, more economically developed nations are states with a well-educated workforce. There is a clear and strong correlation between the educational attainment of a nation's workforce and economic productivity. Nations can build a strong foundation for economic success and shared prosperity by investing in education. Nations can increase the strength of their economies and their ability to grow and attract high-wage employers by investing in education and increasing the number of well-educated workers by improving the literacy rate. Investing in education is also good for the long run, since employees with higher incomes contribute more through taxes over the course of their lifetimes. Hence it can be concluded that investing in education , will definitely boost GDP maybe not in the short run but indefinitely in the long run.

The article discusses the increase in the minimum wage and its effects on employment as the government struggles with the rise of inequality over the previous years. David Neumark an economist at university of california argues in his paper that a high minimum wage wage may not be effective in tacking poverty. Other impacts on the increase in minimum wage is higher productivity on the other hand labor is so cheap that there is less incentive to increase the wages. Higher minimum wages could boost the economy and if employers focused on high-skilled workers in the short term, that could boost productivity and the economy in the long term, eventually providing jobs for the low skilled.

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 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.

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

Sep 9, 2014 17:14 UTC SEATTLE--(Business Wire)--A Seattle-based firm that steadily created one of the largest hospital systems in Southeast Asia and India today announced plans to invest another $150 million to expand its network to 34 hospitals and one clinic by 2018.

This article relate to our topic of supply and demand because a firm is investing many to create hospitals close to where people live and work. This is important because since many people living in one area does not have transportation, they have a high demand for close by hospitals. The resources (investments) were allocated accordingly to achieve its aim.

This article shows what the problems could be if the households/consumers/workers demanded higher minimum wages. On research in this article says it will decrease employment and give less incentive to the firms to HIREpeople and give them higher wages. However, another studies show that firms might cut back on some benefits for the worker, they might improve the productivity of the product. Moreover, the workers might as well work harder. And much more. The point is that the workers will do whatever it takes to have a high income. Thus it is possible to say that higher minimum wages could improve the economy because then, the national income will rise. And then this will increase the overall GDP of the country, leading to a higher economic growth.

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.

Singapore is a robust economy with a sound political system and yet very fragile as it is very dependant upon global forces of wind. Politics in Singapore is almost like Board of Directors of Singapore Inc. The Scarcity of land, combined with high cost of living and ageing population & increasing the healthcare costs are real issues facing our country. The Economy is faced with tough global pressures, cheaper hubs of production in the neighbourhood. Singapore has to reinvent every few years. Value addition was the key in the past few years but now that is not enough. Value creation in the economy is the new need and our politicians know that and doing their best to drive strategic initatives to set up Innovation and Research hubs and also trying to become Startup Capital of the East.

Consumers are upbeat about the economy and their future income prospects, according to the University of Michigan's latest survey. The preliminary headline consumer sentiment index for November was 93.1. Economists had estimated a rise to 91.5 from 90, according to Bloomberg. This increase is likely to become evident in higher consumption, which will shift the AD curve right, thus increasing short term aggregate supply.

The US trade deficit (current account deficit) grew again in 2015, and for the first time since 2012 the credit from US exports has decreased. The article also discusses the impact of the US' high exchange rate, and the role of the US in the global economy (stimulating other economies).

A study done in certain Asian countries such as Indonesia and New Guinea show that these country's economies are being prevented from developing by malnutrition. Malnutrition has shown to stunt children's brain development. When children's brain development is slowed it prevents them from receiving the education they need to get out of poverty. Inn these countries education is often needed to remove them from poverty. If malnutrition countries to be this high in these countries it can prevent them from having developed economies.

Economic growth in Africa is expected to accelerate to 4.7% this year and 5% in 2015, but the advance is failing to translate into job creation and the broad-based development needed to reduce high poverty and rising inequality rates in many countries, the UN has said.

Along with the high amounts of violence in Burundi the inflation rates in the country are also increasing. The inflation rates in Burundi has risen to 5.6%. This should cause the Burundi economy to contract by 7.2% but it grew 4.7%. After President Pierre Nkurunziza won the election in a controversial violence in the country has significantly increased causing many donors including Belgium. The country's economic status could worsen if the violence continues and donors remove their aid. The European Union funds 50% of their annual budget and they are threatening to suspend if Burundian authorities do not their countries issues with diplomacy.

According to this article from the Deloitte University Press, the length of recovery has little to do with the probability that a recession might occur. Dr. Daniel Bachman claims that modern business cycle thought and recession data suggests that business decision makers should look elsewhere to gauge where the economy is headed. Since WWII, the average US business cycle expansion has lasted 56 months. The last three expansions have been exceptionally long and the current expansion is already longer than most of the expansions in the 1950s-70s. Therefore, it is possible that something such as a the role service in the economy has changed but the sample is small and the uncertainty is high. In fact, most economists who study business cycles do not view them as cycles. The world's first industrialized economy, the UK, suffered banking panics in 1825, 1847, 1866, and 1890 and the fact that a crisis appeared every 20-25 years suggest that there was some form of regular force at work in modern economies that lead to a cycle. However, as economists began to use statistical techniques, they discovered that the cycles in the data were probably illusions. As, a result, economists have mostly rejected the idea of business cycles repressing an inherent, regular feature of the economy. Instead, they view the economy as experiencing random shocks, both positive and negative.

One of the main things we talked about or that stood out to me was how the income of the indivisible affected demand of a good and it seems we all came to a consensus that luxury goods are most affected by changes in income. In the article a BMW car company speaks out it's total revenue has been decreasing as the economy is slowing down . Over the past 5 years China has been experiencing periods of economic downturn and car sales were declining drastically people were even canceling orders, however, increased government action led to a period of economic growth in the third year which increased sales by 4% or so. But things slowed down again this year and Song ( an owner of the company ) talked about how he had to cut prices even further from 4%- 20% just to increase consumer demand even though it only made a slight difference because people's income have decreased they can't spend as much money as they used to on luxury products such as BMW cars or multiple cars, they are now focused on saving money.

I agree that the demand for luxury cars has declined as a result of decreased economic growth in China. Shares of some luxury car companies have dropped by more than 30% in the last year while shares of an inexpensive compact car manufacturer have increased more than 20%. The demand for luxury cars is very elastic. These cars are a luxury, not a necessity. Luxury goods take up a relatively large proportion of income and are used over a long period of time. There are a relatively high number of substitutes for luxury goods. In China, customers are choosing to purchase inexpensive cars rather than luxury vehicles in order to save money.