Group items tagged

This article mainly focuses on China's economic growth and its fast approach to what could put it's economy in an equilibrium state."The rate, the spot rate and future rate, determined by the market supply and demand, basically are very close to the equilibrium rate," said Zhou Xiaochuan, governor of the People's Bank of China. He also warns that at this time China is trying to maintain low prices and if external governments begin to have inflation problems this could potentially create problems for China's economy. This comment was a directly linked with China's exchange rate against the US dollar, an issue that has yet to be addressed.

Felix Baumgartner from Austria recently jumped from 128,000 to simultaneously break the sound barrier, and world records. To get there he rode in a 55 story balloon with around $100,000 worth of Helium gas. This is an extremely large one-time purchase, and I would think that it upset the market equilibrium by a considerable amount.

This article is about how energy regulator Ofgem warns about how there will be energy shortages by 2015 unless the market can be reformed to reach an equilibrium.

The article I chose describes the housing price in the UK. It only changed very slightly so you could say that the housing price stayed stable. This means that the people living in the UK are willing to pay the same amount for their house and are able to do so. The market for houses is in equilibrium.

The article talks about topic covered already in the title, with some interest to the growth of industry of southern euro-zone countries and exacerbation of German and French production. So obviously, here I can refer to PPF where resources (also human capital) are being used more efficiently; here is the movement inside existing frontier or perhaps even outward shift with improved quantities and qualities of goods (especially capital). Nevertheless, economists still fear the euro-zone might fall in recession again if there are two quarters of consecutive fall (if the economy contracted). The market clearing price of many durable goods can be determined only to some extent, due to the presence of outside disturbance (fiscal and banking crisis - therefore always introducing new policies and bail-out deals). Another thing associated with the previous sentence and the article is the price mechanism (interaction of demand and supply) which allocates resources. Under unstable circumstances which are currently taking place in euro-zone, incomes are plummeting (falling GDP per capita) except for some particular periods of time when the economy meets actual growth, meaning that there is less demand leading to an inverse effect for producers. Normally, producers wish to supply more at higher prices, especially if income of people soars so they buy more of that goods. Therefore, higher prices do not present an incentive for producers to produce more. All the producers want to increase their producer surplus; but the trend is clear - towards maximized community surplus, since producers depend on consumers' utility.

Europe cut the channels that were made in Iran, therefore all of the people that were connected to the Eutelsat Communications won't be able to view channels made by the IRIB. The consequence of this will be an excess in demand, since all of the Iranian people that lived in Europe will demand channels broadcasted in Iran but there is not going to be supply for it. In addition to this, there is going to be less demand for the European satellite since the Iranians will search for other company that broadcast Iranian channels.