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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.

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.

The price of coffee has been going up and will keep at it but this doesn't seem to affect demand as demand is still increasing. Now quality is not affected by price. These can be based on the fact that the product is addictive and not many substitutes will suffice. Some even think of it as a ritual every morning.

I agree that coffee is inelastic because it is typically contains caffeine which is an addictive drug. People are addicted to coffee and depend on it as part of their daily lives. They cannot function without it, or are at least unwilling to. Therefore, consumers will continue to purchase coffee despite rising prices. Coffee drinkers also enjoy the last of coffee and are not willing to switch to other caffeine filled drinks such as tea or soda because they are not close enough substitutes. In fact, coffee consumption has actually increased despite rising prices. Consumers will not change their tastes unless prices become drastically higher.

i agree with the point that the change in qunatity demanded is not very significant. This is due to the fact the coffee is a habit forming good and addictive to most coffee addicts. However it also depends on the proportion of income spent on the good. Coffee prices can range from being dirt cheap at hawker centres to expensive at cafes like Starbucks. Hence even if the consumer is not a coffee addict, and only a small proportion of income ( if it is 'insignificant' ) is spent on the good, then a change in price will not affect the spending behaviour ; demand is price inelasic

Raise in market price of soda in Chicago is discussed. Will it result in an increase in revenue and reduction in consumption? The PED suggests so. A similar policy was introduced in Mexico, and the soda there had a PED of 0,6, making it inelastic. Will the same happen in Chicago? Demand, elasticity and the PED are discussed in this article.

How exactly has this affected the elasticity? You should elaborate on price and its relation to demand and the PED. I agree that the raise in price would increase revenue and reduce consumption. However you contradict your previous point by stating that soda will become inelastic. I don't agree with you because soda is not a necessity and it is not healthy so if there is a raise in price and PED which will cause demand to decrease meaning it is elastic.

The above article is about the price mechanism and how it is used to price oil. It talks about how the price is allocated depending on other companies as well as demand, which is why i think that this article is very appropriate as a real life example of what I am studying on this chapter.

This article speaks about the Supper Bowl and how it is inelastic. Because the quantity demanded for seats is inelastic, they decided to increase the price to gain more revenue. This is strange because this seems to be a luxury item more than a necessity, but I guess some see it as a necessity.

this article talks about how NfL owners price there tickets inelasticity so they put their tickets cheaply so they can fill up the stadium. Owners know that they will take a hit in ticket revenue but make up the difference with complimentary goods that are sold in the stadium.

It's interesting how the teams take advantage of elasticity. As Ricardo said, the owners expect to make a loss on the seats with lower prices, but also expect to make it up with the purchase of complimentary goods. Because of elasticity, the decrease in the price of seat leads to higher demand and the stadium is filled up. As a result, revenue for complimentary goods also increases, leading to more revenue overall.

(The number of the affected...) NEW DELHI: Water scarcity will worsen across the world, and particularly in countries like India, as a result of unchecked climate change. Some 500 million people could be subject to increased water scarcity - even if global temperature increase is limited to 2 degrees Celsius above preindustrial levels.

(The number of the affected...) NEW DELHI: Water scarcity will worsen across the world, and particularly in countries like India, as a result of unchecked climate change. Some 500 million people could be subject to increased water scarcity - even if global temperature increase is limited to 2 degrees Celsius above preindustrial levels.

This article relates to our topic because as we can see scarcity of water is everywhere, and not just in India. Being from India I thought it was interesting how this topic could relate to India. The article also states that more demand there is the more scarce water is going to be. One of the major factors in that would be population growth. I think that is important in water scarcity.

This article although an opinion piece is made up of many subtitles, the one I chose to focus on is Roosting chickens and Fed Bashing, It talks about how Druckenmiller keeps predicting economic dooms due to rising interest rates since he closed his business. Personally I feel this is like the quote we got that says, "looking at statistics...to save himself from having ignorance foisted on him", this article is about Krugman using his on look on statistics to see if Druckenmiller's predictions are accurate since some can say they were and others can say they weren't. Krugman gathers his knowledge from past experiences with 2008 crash and The Great Depression; with my own knowledge of the Great Depression and things that contributed to it's solution this drives me to say that government intervention and spending are what's needed to fluctuate the economy ( hence why people argue WWII was the real solution to the Depression due to it's massive spending).

A thriving black market has cropped up after the NSW prisons smoking ban On the black market cigarettes can cost $300, up from $28 before the ban Prison sources claim that 'an inmate fight broke out over cigarette butts' The ban on smoking in NSW prisons has reportedly led to a thriving black market, where a packet of cigarettes can go for as much as $300, while matches and papers can fetch a staggering $90.

This article has to be about the negative externalities of consumption, as it involves smoking. It affects not only the ones smoking but the others as well. Banning it in a prison can help in bringing the MSC equal to MSB. This also wont affect the tobacco industry as there is still comsumption taking place outside the prison. Banning it has a negative step, which is the creation of the black market. Prisoners are even fighting for cigarrete butts. The government / the prison authority should take a step in taking the ban away and but also making it difficult to obtain cigarettes, to avoid such brawls.

I agree that the negative externality involves non-smokers in the prison getting affected. You suggest that the ban should be taken away, wouldn't this still lead to more people smoking and causing even more second hand smoke to affect the non-smokers? This wouldn't help the situation I believe it would make it worse instead.

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.

This article relates to the Topic of Opportunity Cost that I have been studying because it talks about how the opportunity cost affects the economic choices that we make in our daily lives. It also talks about how although we are aware of the direct costs in life, we don't actually think about all the things that we have to give up when buying something else. We are aware of our finance, and realize the direct cost of our actions, but we don't see the unseen costs, such as the opportunity cost.

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.

This article focuses mainly on opportunity course. It's been established that opportunity cost is the cost of doing something rather than another. In this case the author focused on a student's decision to attend college and for how long. At least everyone has been through the phase where they looked at the price it costs to go to college but few go deep into things such as life, transport etc. There are others who decide to take a year off and travel; the opportunity cost in this is the education they could've been getting so they could stay on track and the money they wasted to travel which they could have used to further their studies or life needs. The author brought up a book by Laurence Kotlikoff in which he invented 4 kids and made them choose different life patterns. I felt this was smart because students can see how the choices they make now could impact their life later on. As expected the child who stayed in school to become a doctor made a lot of money, however, student loans and all other expenses leaves them with as much money as the next middle-poor man. Then again the other child who became a plumber and skipped college makes money but has no student debt. This is not to say that they are better off but it's just to clear the stereotype that the longer you stay in school the better off your life will be; there are many factors that play into it.

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.

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.

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 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 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.

The exposure to second hand smoke during childhood destroyes their arteries and can lead to heart and lung damage . This smoking in parents causes lung cancer and premature death fron conditions such as heart strikes and high blood pressure. It is recommended that these parents stop smoking in order to help make the future of their children better. This consumption of cigarettes causes a negative externality as the children are affected in the near future from second hand smoke. These children whose parents smoke are more likely to smoke as well which continues the cycle of negative externalities of the co sumption of cigarettes.

This is a perfect example of negative externality of consumption. By smoking in public places, the consumer is creating negative externalities, in the form of passive smoking, for non-smokers especially children. When individuals smoke cigarettes, they are compromising their own health as well as the health of those around them who inhale the smoke. I agree with the point that another external cost can be younger children being influenced to smoke following the habits of their smoking parents. This is why cigarettes are considered as demerit goods as they cause significant negative externalities , and these are the goods that the government would like to limit consumption. Individuals may not be aware of the external costs arising from the consumption of the good because of lack of information or myopic behaviour. For the article mentioned above , it is crucial for the state to take on a paternalistic role and curtail consumption

This article concerns a company's evasion of government intervention which was aimed at reducing its polution. For this reason I think it fits nicely into what have learned this week.