Group items tagged

This article talks about how the FCA plans to make the competition a little more intense. By doing this, they plan to have companies sell more of the products in demand and less of the ones that are less likely to sell, thus creating more profit for a company. This causes other companies to try to challenge them, growing the market/economy. The FCA is also not allowing companies to hurt a person financial, trying to grow the market.

This article discusses how the car sales have been hurt in the past due to the recession. The article talks about how the private sector has become a bigger target for the car companies. The elasticity of supply has grown to fit this curve, causing the car companies to gain some more profit that they had in the past. The companies also began to target people that care more about the environment, selling many more low emission type cars. They had to adapt to what the demand was, causing their elasticity of supply to grow to fit many wants.

The article says that the number of cars sold in the past has decreased. However the market for cars has recovered. The articled shows how companies adapted to the changing needs of customers. Customers now want more fuel efficient cars and often buy them on the private market. This causes the elasticity of supply of these companies to increase because they quickly had to adapt to the new situation.

Quarrying and aggregate supply firm Breedon believes profits will "significantly exceed expectations" after margins continued to improve in the final few weeks of last year. The company, which has its Scottish headquarters at Ethiebeaton in Angus, said market forecasts for the year look set to be significantly surpassed during a finish which escaped the disruptive influence of winter weather. We don't often think about how macro- and micro-economics can come together, but, for big companies, one is no more important than the other. Not only do you have to think about the margins and competition of your own market, but how your market is doing in general. It doesn't matter if your beating the other guys with a better price and more demand if that price is barely enough to cover what your supplying. On the flipside, your countries economy could be doing great and your factors of production most favorable but, if everyone's getting more benefit from those advantages than you are, it's only a matter of time before get too far a head. This article is a perfect example of where a European company has become enthusiastic about future profit predictions based not only on competition and margin but just on the welfare of the whole country in general

Here we have an uncanny case of a company that has little to no competition, yet its market share is actually dropping. Sony has been constantly ignoring the price elasticity of it products so much so that they refuse to recognize their fall from favor in the market war. "Our initial expectation is that sales should double at a minimum," Jack Tretton, chief executive of Sony Computer Entertainment America, said in an interview [at the time]. "We've gotten our production issues behind us on the PlayStation 3, reaching a position to pass on the savings to consumers, and our attitude is the sooner the better." As a result Sony has kept its prices constant.

This article talks about how the oil prices are very elastic. Due to Venezuela having a "shortfall"in their production, OPEC decided to take advantage of this. They saw this as a "a legitimate excuse to increase output". Therefore, this allowed them to increase the prices a little more and still be able to sell more oil, causing a greater profit for OPEC. In other words, because Venezuela had a shortage in their oil production, other countries were able to take advantage of this and allow the elasticity of their product to create the greatest profit possible.

This article relates to demand, because it highlights one of the biggest advertisement opportunities for the monopolistic competition market that is the automobile industry. This market has monopolistic competition because the products are not identical, and the makers have the ability to influence prices. It is easy for firms to enter the market, and there are a lot of car-makers out there. Therefore, advertisement and recognition is key. This is a great example of advertisement.

 Too much protectionism is not good as well as no protectionism, it will ruin the free trade in the world. 

This article looks at the European Commission, an organization that has warned of a slide towards "blatant and uncontrolled protectionism" across the globe as emerging markets from several countries are starting to defend themselves, warning that abuses by countries like Russia, Brazil, Indonesia, China and other key states could pose a growing threat to global recovery. The EU trading body has said "154 new tariffs and restrictive measures have been pushed through over the past year while "virtually none" has been abolished"

According to the article, a currency trader named "Richard Usher" has allegedly been manipulating market prices with the help of the other banks. Authorities from numerous countries, including Switzerland and the US, have been looking into these accusations, but so far they say they can't find anything on which to charge Richard or the other traders he supposedly worked with.

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.

This article presents the increases in gas prices that are upsetting consumers all over the world. There is an "unconventional gas" boom going on ,which is affecting the market and supplies for gas in the States. The issues are global, though, and conserns politicians if this rise in price keeps up.

the article is showing that the cheapest car in the market is sold for $8000 and nissan is now introducing a $3000 model. This is dangerous for the other car because it might take away many consumers. this article shows how the price of the car is lowered.

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 talks about the crisis in the UK, and how the stores keep on closing and will keep on closing if the government doesn't freeze rates by 2013. Therefore, this article is not about something that the government has done (putting taxes) but something it needs to do to help the market in the UK.

This article suggests a few correlations between big cities and housing productivity and productivity in output of tradable goods. Besides that, also externalities are mentioned as justifications to those corollaries. To put negative externality stated in the article more like economics, MSC = MPC +- externality ("congestion, blocked views") so this is an inefficient allocation of society's resources and therefore increasing demand for government's regulation on housing. Although there already is a large gap between firms' input in housing and housing costs, this bolsters the whole situation. As a consequence, people in big cities actually pay higher cost for housing than it already is.

This article describes Sony, and its struggle to maintain their forecasted profits this year as their new releasings didn't live up to their expectations. The demand for their new products was miscalculated, and their profits decreased as a result of that. A 36 per cent decrease of profit was the result, and this article describes the results of miscalcuating demand in detail with real life results.

This article demonstrates demand well, simply because it shows how the demand for a certain product is growing and companies in Russia are racing to have the better product on the market. "Cost, reliability, service contracts, after-sales support, and customer relationships will be key competitive factors," concluded Tohani.

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.

This article discusses how sometimes the use of barriers has a negative effect on the economy of a country, for example, as can be seen with Bush's administration that imposed tariffs on steel imports. Trade protection can be seen with the rush of agreements that countries are not willing to partake in, such as Japan. Of course after the Bush administration, the democratic party picked up the "protectionist baton" and have worked toward trade liberalization.

The article talks about tariffs imposed by the US government on the steel market. It shows the other side of protectionism. In the case of the US the tariff impose had a negative effect on the steel market. The tariff robbed more in profits than it gave to steel making companies.

This article offers a glimpse of recent fluctuations in foreign exchange market. I will narrow my focus down to the USD. If the U.S. Federal Reserve decides to keep up the spending on Treasuries or mortgage-backed securities, this means that the supply of USD on foreign exchange market will be sustained or perhaps even increase. This means that should the demand for USD stay constant, its value will depreciate. However in the end, the expectations of investors concerning the future growth/future path of the exchange make up arguably one the most important share of a currency's movement.

This article talks about how a few larger electricity and gas companies have increased their prices after the news about a cold and bitter winter in the UK. If we apply this to what we have read about this week, they know that the demand for fuel in houses will increase, but with a increased price they can avoid shortage during this period of time, hopefully. At leas this is what they try to do. They also know it is profitable for them, since people will still need the fuel due to the cold, so the income for the company gets higher.