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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.

Foreign unemployment fall cuts jobless rate Published on: 10 Apr 2015 09:23 CET Facebook Twitter Google+ reddit Switzerland's official jobless rate fell in March to 3.4 percent from 3.5 percent in the previous month, driven by a drop in foreign unemployment, according to government figures released on Friday. The decline marks the first time since June 2014 that the rate has fallen in a further indication that the Swiss economy is so far weathering the rise in the value of the franc, which forecasters have said will cut growth this year. The percentage of foreigners registered as out of work tumbled to 6.7 percent from seven percent, while the rate for Swiss citizens remained unchanged at 2.3 percent, the State Secretariat for Economic Affairs (Seco) said in its monthly report. The number of unemployed registered in regional job placement offices in March dipped by 4,813 from the previous month to 145,108, Seco said. But the jobless rate last month remained above the 3.3 percent level in March 2014. The rate declined or remained the same in all 26 cantons with the canton of Valais recording the biggest fall, from to 4.6 percent from 5.4 percent. Neuchâtel registered the highest rate (5.7 percent, down from 5.8 percent), just ahead of Geneva (5.6 percent, unchanged). Obwalden had the lowest rate at one percent, down from 1.1 percent. Unemployment in Zurich, Switzerland's largest job market, remained unchanged at 3.6 percent. The impact of the strong franc may not have yet affected the Swiss job market but observers believe that unless the currency weakens, jobs cuts can be expected. In January, the Swiss National Bank abandoned a policy of maintaining a euro floor of 1.20 francs and foreign exchange traders immediately bid up the value of the franc. On Friday, with uncertainty about Greece's finances lingering, the euro was trading at around 1.04 francs, making life difficult for Swiss exporters selling products into the eurozone, the biggest ma

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 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.

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 describes how the Indonesian economy swung from a deficit in balance of payments of $160 to a $50 surplus. The imports of the country fell significantly, resulting in a decrease in deficit of the balance of trade in goods and services, which has been a factor in the swing in balance of payments.

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 rate of unemployment in the UK for the people of ages 35 to 49, who are considered as the older group of workers, was only 4.7%. Compared to them, the jobless rate of the people aging 18 to 24 years was around 18%. The rate of unemployment in these young people increased almost 30% between the first quarter of 2008 and the fourth quarter of 2011. According to ONS, "The burden of higher unemployment has therefore fallen most heavily on younger workers". The most significant cause of the significant rise in the rate of unemployment among all workers, especially targeting the youth age who are just out in the work force to find jobs, is the recent economic crisis.

The Russian recession has caused sales for luxury goods to drop. Many companies that sell luxury or tourism goods have seen the demand for their product significantly decrease since the recession. This is because these products have a negative income elasticity so as income decreases so does the demand for these products. The demand for tour groups and hotels has also decreased because of the recession. Since all of theses products have a negative elasticity once the income of the buyers in Russia decreases then so will the demand for them.

This article discusses the impact of the Russian recession on demand for luxury goods. The recession has decreased the income and spending power of many Russians which has resulted in a decrease in a demand for luxury goods (clothing, jewelry, etc.) and services (airfare, hotels, etc.). The demand for luxury goods is very elastic. This is because luxury goods are not necessities and consumers can survive without them. These goods often have a reasonable number of substitutes. They also require a relatively high proportion of income to be spend on them and are used over a long period of time. The Russian recession has impacted firms across the globe but especially in Europe where Russian consumers account for a large percentage of customers.

The Nigerian government must diversify the economy if the country is to survive falling global oil prices, said World Bank VP and Treasurer, Arunma Otteh. She said that Nigeria ranks 152 out of 188 in the HDI, and ranks below the average for sub-saharan Africa. Life expectancy in Nigeria is 53 years, 8 years lower than Ghana and 21 years lower than Brazil. Nigeria also ranked 136 out of 168 most corrupt countries in Transparency International's 2015 report. This affects the flow of FDI to the country. Nigeria's rapid GDP growth over the past decade hasn't translated to strong human development or competitiveness. Nigeria can no longer only depend on oil, which not sells for as low as $26/barrel which accounts for 95% of the country's foreign exchange.

This article highlights how the GDP is not the only factor in measuring the development of a nation, but how corruption and business confidence can play a role. This is seen by the decreasing oil prices, which has affected the Nigerian economy greatly.

The article relates to opportunity cost and how each choice holds a negative and positive trait. In the article they spoke of soft money (paper money) and the use of species (such as gold and silver). The positive effects of soft money is that it is cheap to produce and doesn't require much material. However. The issue with soft money is that since it's so inexpensive people believe that it will cause inflation to soar. Species are valued because they are hard to find and require a lot of labor to get (more money). Taking a lot of time to retrieve and to mold into coins takes up more energy. A new idea that came to mind is digital currency. Depending on how it is used it can become a great asset or a hindrance. Overall, there are many opportunity costs all holding good and bad qualities, but the greatest is the one that benefits us overall.

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

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.

In the fourth quarter, New Zealand's terms of trade declined as weaker prices for dairy and meat saw export prices falling more than import prices. The merchandise goods terms of trade fell 2% in the fourth quarter, export prices fell 5.7%, and import prices dropped 3.7%. Terms of trade measure the buying power of New Zealand's exports abroad. In the fourth quarter dairy export prices fell 13% while volumes fell 0.9% and the value of exports fell 6.7% to $2.9 billion. The average price for while miles power has dropped 18% at the four fortnight Global Dairy Trade actions this year to US$1890 as global milk supply continues to outweigh demand and weaker dairy has hit the broader economy.

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 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 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.

As prices for commodities have decreased, the value of the Canadian dollar has decreased as well. Two years ago the Canadian dollar was worth 93 American cents, yesterday to was worth only 69 American cents. This depreciation in value is because the Canadian economy is heavily dependent on oil and other resources and it has had many impacts on Canadians. Imports, like fresh American vegtables, are now more costly for Canadians. Currently, a single head of broccoli in Canada sells for around $4. Last winters, Canadians could buy 2 for only $1.50. However, in many ways a weaker currency is helpful to the Canadian economy. The US is overwhelmingly the largest market for Canadian exports, which are now less expensive across the border because of the currency's fall. In addition, almost all commodity exports are priced in American dollars so foreign exchange gains have helped cushion some of the blow to Canadian oil producers and mining companies.