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The article shows that the selling for iphone 5 have been incredible. It's because the demand for the new iphone is extremely high so that it took only an hour for Apple's site to change its shipping estimates for the product to two weeks. And it's now the most expensive smartphone over the world due to the high demand of iphone. And i think it's also because of the supply of the phone is limited, which is much less than the demand. Further more, in the demand supply graph, the increase in demand causes the demand graph shifts to right, which shows us how the price goes up and the company are going to have more income. I think that's how the news relates to the topic for this week.

Currently the Obama administration is talking about finding new ways to create jobs and stimulate growth. However, it has proved to be unsuccessful, as the only policy that will really help is an increase in aggregate demand. The article explains that aggregate demand simply means spending: "spending by households, businesses and governments for consumption goods and services or investments in structures, machinery and equipment." At the moment, businesses should not to invest because there is lack of consumer demand. The federal government could increase aggregate spending by directly employing workers or undertaking public works projects yet this proves to be difficult. The author explains that the most important thing is for policy makers to stop focusing on debt and attempt instead to raise aggregate demand.

THis article talks about how the recession has effected America and what America really needs is an increase in aggregate demand. That is the increase in consumption, investments, exports etc. They say that a direct solution to increase aggregate demand would be an increase in aggregate spending by employing citizens in public projects controlled by the government and if that isnt enough then its all up to the citizens. It then talks about how consumer confidence significantly effects spending. that is if house holds feel that they are rich, then they dont feel the need to save and as a result of that they spend the money they were going to spend and vice versa.

The increase demand for iPhone 5 causes the Apple shares to close at almost $700. The firm receives two million pre-orders. Most iPhones will be delivered to stores later this week, but some orders may be delayed. An estimate of up to 50-60 million iPhones could be sold by the end of the year. However, the soaring demand causes concerns for the firm, as they may not be enough products to meet the consumers' demands. This could potentially delay the delivery of the products. I chose this article, because I think it relates a lot to the idea of scarcity. Though it may not be the biggest concern that could affect people's lives tremendously (not as much of a concern as problems like shortage of food or water), but it tells us that mass resources can become scarce very easily as a result of high demand for it. This can easily connect to the fundamental concept of economics. That is supply and demand. As a result of high demand for the products, the quantity that can be supplied by the market may not satisfy the consumers' demand. This is also an example of human 'wants.' Most people don't need an iPhone, but because of their 'wants,' they want to get one for themselves. You can see that human wants are infinite and that resources are finite that will eventually become scarce. This could potentially add value to the iPhone 5 if the products become scarce. Bibliography "Economics Basics: Supply and Demand." Investopedia - Educating the World about Finance. N.p., n.d. Web. 18 Sept. 2012. .

This article is very simple. It talks about books and how author can change elasticity of the book by using different ways of writing books. There is one interesting example of the change in price and its consequences. So the author of the book decided to make an experiment and increse the price for the book from 0.99$ to 2.99$ (302% change in price). Usually we would expect demand to go down, but in this case demand for the book rised from 9 to 17 (189% change in demand). So 189/302 = 0.62, shows that demand is inelastic, what makes more sense. This article shows us that elasticity of demand depends on a lot of different factors.

House prices in the UK have fallen for the third month in a row. Although the government has supported in mortgage borrowing, but the consumer's uncertainty surrounding the economy and their ability to afford the houses still causes the decrease in price in the market. The increase in demand is believed to be driven by seasonal factors compounded by the Olympics. It is believed that the house prices will continue to decrease slowly over the remainder of the year. There is also the first decline in supply in September after seven months of growth. I think this article fits perfectly under the topic of demand. The basic law states that as price falls, the quantity demanded of the product will usually increase. However, this does not fall under the basic law behind the demand curve, but it indicates that price of houses have fallen as a result of an increase in demand. The Europe's economy isn't doing very well at the moment and it causes more hesitant in how they consumers choose to spend their money. Price may be low, but they may choose to spend their money elsewhere. This does, however, support the supply law. As price falls, the quantity supplied is dropped. Suppliers wouldn't want to produce or supply to any products that isn't very well demanded.

It is no surprise that Apple products are in high demand, and the new iPhone 5 is no exception. Demand is defined as the willingness and ability of a consumer to purchase a product. The demand curve is also sloped downwards, opposite that of a supply graph. However, in the case of Apple, the demand curve does not follow the norm. The New iPhone 5 reached a pre order sale of 2 million in the first 24 hours, while the iPhone 4S reached one million. The demand has gotten higher, yet the price has risen from $179 to $199. The course companion states that demand increases as a result of a price fall and the graph shifts to the right with an income increase, yet the iPhone manages to be not only the best selling iPhone, but the most expensive. I think the size of the population and the change in the age structure played a big role in the massive pre-order sales. The whole population did not necessarily increase, yet the population of smartphone users has increased. It was exciting and interesting to see how these regular news articles relate to what we have learned throughout the week.

This article clearly shows the way law of supply and demand works: "The best way to get oil prices down is to let them go up. It's happened many times before. For one reason or another, the demand for an item begins to heat up, driving its price higher." Thus, later people refuse to buy that items, so the prices go down. Also it says about another example of the law of supply and demand - housing. Seven years ago in Kazakhstan one house could cost about 1,000,000$, but then suddenly prices went down till about 400,000$. As they say in article that situations call bubble, when prices tumble just as quickly as they rose - if not faster. So I think, it is a good example for the chapter 2, where you can easily understand the way demand works and how it affects the prices.

In this article it explains why we, the consumer, are unable to influence gas prices. The article suggests 3 main reasons: 1) for oil companies it is more profitable to set a higher price and then let the price adjust to the demand. Simply, instead of letting the price adjust upwards, the price is set a higher level to let it adjust downwards. 2)The increasing price over the past two years has not created a drop in demand. Rather, the increasing price is accompanied by increasing demand. 3)For countries, the increase of price and demand are signs of prosperity, so a positive thing. This is an example of where it is hard to achiever a price equilibrium.

Corn and Soybean prices fell as buyers are moving away from American producers to suppliers in South America such as Brazil and Argentina. Due to the declining demand, there will be allocative inefficiency and supplier's surplus with American corn and soybean. The equilibrium is not achieved, however the price mechanism could perhaps self-right the graph by lowering price and allow the supply to be harmonious with demand.

This article relates directly to the concept of income elasticity of demand and cross elasticity of demand . McDonald's monthly sales fall for the first time in almost 10 years. Its revenue fell by 1.8% last month. This happens because of the various reasons. One results from the unstable economy. People are more cautious about spending their money. A lot of people choose to "eat in", simply because they cannot afford it. This applies a lot to the younger consumers, who have been facing unemployment. The company has also been affected by Europe's economy since the market of Europe counts for 40% of the company's revenue. European economy has been facing recession. There has been a tremendous amount of unemployment, which means a decrease in the general population's income. This directly relates to income elasticity of demand. As income falls, the quantity demanded for products fall as well. In this case, people choose to eat at home to be more frugal. I believe this contradicts a little to the idea of inferior goods. McDonald's may be considered as "inferior goods" to the majority. It is often said that as income decreases, inferior goods will likely benefit from it. However, in this case, McDonald's do not. People choose other alternatives instead, which is eating in. So it is just not McDonald's that has been affected, but a lot of other restaurants and fast food chains too. Furthermore, fierce rivals have also came up with strategies to out compete its competitors. For example, Wendy's Co. has decided to upgrade their menus and offer discounts. This relates to cross elasticity of demand. Obviously, as other rivals offer discounts and as well as an upgrade on their menus, consumers will shift to consuming those products that are slightly cheaper.

I Found this article interesting because it relates the purchase of gold to the economic state/growth of the USA. The article states that gold companies are expecting a fall in the purchising/demand for gold due to the investors being insecure of their economic state and dont want to spend mone. This shows as that the US economy is weak because there hasnt been a fall in Gold demand since 2002, and therefore we can assumer that the only reason that the demand for gold now would drop is because of economic instability

This article is very good as it talks about the insecurity felt by investors due to the poor economic condition. They have lost confidence because the economy at this moment is really unstable and anything could happen, in this case the demand for gold fell, something that is first happening in a long time, thus showing us how the economic crisis has affected even the biggest economic powers, such as the US.

In this article the CEO of total says that the increase in oil prices is bad for the consumers all over the world. This increase in prices is because of an increased demand by the society today. However since oil cannot be produced quickly the production rate cannot keep up with the demand rate. Hence there is scarcity and more demand for oil. This increased demand is also the reason why oil prices are skyrocketing today,

The tuna stocks around the world are being fish out an alarming rate, to fast for the tuna to reproduce and keep there numbers constant. This constant battle between the supply of the fish and the demand for them in Japan (75% of the tuna market) is devastating the tuna populations. The U.E. and other organzations have been trying to put quatos on the catcing of tuna but are being ignored by the fisheries and the tuna stocks are being continually fished. In a matter of years there will be no tuna to fish. As you can see this a problem of supply(where there aren't enought tuna) and demand(which is greater than the supply).

This article describes how the tuna stocks, around the world, are being fished out at an alarming rate. Too fast for them to recover naturally. Demand for tuna far exceeds the supply (what the sea can produce) without disturbing the natural order. So the WWF & ISSF have tried putting quotas but no one is obiding and the overall catch of tuna each year is increasing...

The demand of the apps for smartphones is growing. Year by year there appear more applications with special function. The people need applications to edit photo, or hit an egg-stealing pig. Now days there is a lot of young people that design and create new apps for the smartphones because demand for the is increasing. The iphone and the Ipad bring big changes in the game industry and started a new era.

I found this article interesting because it shows us that demand and supply is not the only factor in determining gas prices. As we know, gas prices are on the rise. But this article tells us that it is not just demand and supply that causes this and that we need to take other factors into consideration.

i thought that this article was really interesting because before i actually thought that the oil companies raised the price of oil randomly just to make a profit but now i realise that there are many other reasons why they bring up the price, for example there economy.

It is an article about the recession and unemployment in Spain. The unemployment is a very serious problem in Spain because the rate of unemployment is about 25% or more so is a lot. This article report that the Spanish situation is stabilizing but we can´t assume that is the end of the recession and the start of the new business cycle. The business cycle is the periodic fluctuations in economic activity measured by changes in real GDP. Output cannot continue to fall for ever as there will always be some people with jobs to maintain a given level of consumption, foreigners will demand exports, governments will continue to spend by running budget deficits, and people will be able to use savings to finance their consumption. Additionally, the low demand for money for investment will result in lower interest rates. Thus, aggregate demand will pick up, the economy will enter the recovery phase, and the cycle will repeat itself. So after the recession the national economy of Spain will suffer an economic growth, the amount of the goods and services produced by an economy over time will increase.

Canada's economy seems to have taken a hit as housing, jobs and exports fell. First there was a 21,900 jobs loss in January plus a 58,000 decrease in Canadians looking for work. In addition, exports fell 2.1%, exports to the US alone dropped, 4 points and imports fell as well. Furthermore a 19% reduction in the housing industry topped Canada's misfortune these past 2 months. Many Canadians are questioning the actions of the conservative government as economic growth is slowing to a crawl.

I think that you have chosen a very nice and interesting article because it's related to our actual topics. Is a good example about the importance of the exchange rates in the exports. If a country's exchange rate becomes stronger, then this makes the country's exports relatively more expensive to foreigners. According to the law of demand, this will cause the quantity of exports to fall. Another think to highlight is the increase of the unemployment rate, this will probably decrease the consumption because However, if people expect economic conditions to worsen then they are likely to reduce their consumption today in order to save for the future. In brief i think that it's a great article to talk about the aggregated demand, macroeconomic and the monetary policies.

I find this article particularly interesting because i never knew that Canada was suffering so much from the recession. Since it states in the article that 21,900 jobs were lost means that the household cinsumption must be very low a resulting in a low agregate demand, and since the agregate demand is low firms gain less proffit and therefore have to cut costs which in this case would be workers.

This article talks about how the unemployment is affecting the United States and how it is related to a decrease in the aggregate demand of the country. And how this possibly causes the real GDP being 6 percent under the trend path.

This article tells us how the recession in the United States has affected the unemployment rate; people consume less thus the aggregate demand is lower and remains like this as unemployment increases. I also found important something that is mentioned: "During a deep recession, more workers move into the category of those who take a long time to find new jobs, and so the decline in unemployment across the labour force as a whole is quite slow" Factors mentioned in this article are what determine the real GDP to be 6% under the trend path.

This article talk about how technology is improving at a rapid pace and thus leading to unemployment in the manufacturing sector. Since these manufacturing industries comprise three quarters of the 20- sub industry sectors, the level of unemployment is considered quite large. Some of these sub industries are leather tanning, paper mills, fertilizer factories, glass products etc. Another influencing factor in the drop of aggregate demand in the U.S is the shift in the age of the labor force. According to statistics, by 2020, people over 55 will compose of more than 25% of the labor force in manufacturing.

President Obama visited the University of Michigan and outlined a new plan aimed at limiting tuition increases at U.S. universities.A key reason for high rates of tuition increase, is simply that the supply of freshman slots hasn't kept up with demand and such shortages lead to price increases.Top universities should focus on increasing the number of students they admit and all who care about expanding opportunities should pressure boards and presidents to spend some of the money on opening up more spots in the classes.