This article shows how the environment can influence the aggregate supply in the economy. The article states that heat stress from global warming may be having an impact on outdoor work productivity in hot regions like northern Australia, Southeast Asia and the southern US. And the calculation tells us thatin temperate regions, people work continuously, but in the hottest places, the working day is split between 80% work and 20% rest. Therefore, people and government should pay attention to the environment problems nowadays because it will lead to a change in nation's GDP. And economists also should consider environment as a determinant of aggregate supply.

Earlier this week the U.S. Department of Energy announced that the average national price for regular gasoline in the U.S. was now $3.96 a gallon. Last week the Kremlin banned gasoline and diesel exports from Russia to alleviate domestic shortages sending gasoline prices in Germany to a record $9.10 a gallon. Although price increases, people are still going to buy it due to it's elasticity, which is so small. The reason is gasoline is definitely a necesity.

I think we will see the change of the market of smartphone through the windows phone is about to start to pre-order. Windows phone is one of the biggest competitors of Iphone over the world. In this case, the supply of the smartphone increases. And I believe the demand or price of iphone is going to chance because of it, after people consider about the oppotunity cost of either buying iphone or windows phone.

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.

American car sales are declining, which can be at the cause of the falling economic situation in America. They need more people to develop the products and the quality of the car somehow decrease, which cause of the fall of demand. I think it's relate to scarcity because the existing oil on earth is about to run out, so the price of oil rise in recent years. Then more and more people would like to take public transportation instead of car. In a word, the decrease of demand is the main cause of the sales falling of the car. Moreover, I believe Ford should think about why the Europeans are not interested in Ford now? Ford do need to do something for keeping their products stand in the European market.