Group items tagged

A minimum price has been set for maize at 1,300,000 Zambia kwacha ($244.40 US dollars) for 1,000 kg.  A micro: minimum diagram can be made.

Maize is a good, which has many complimentary goods, because it is a staple food in many recipes.  This can be shown in a cross price elasticity diagram.

It is also a substitute good. Though carbs of some kind are a necessity, people could by wheat or rice or millet instead. You could consider looking at prices of substitute goods.

There is high demand for maize, so this good is inelastic and therefore it is smart to place a floor price on this good, since price will increase with little change to the demand.

This is also a subsidy. You could draw a subsidy micoeconomics graph for this.

This nicely allows some evaluation, as we can speculate on to what evaluate the government should change interest rates

I could use this to introduce the relationship between interest rates and exchange rates. However that's more international economics so I might just ignore it. 

This is a nice article that allows me to explain what inflation is and how Kenya has cost-push disinflation. I can easily show this in a diagram. What's more it also talks about monetary policy, so I can explain how the government has helped create this - the impact of interest rates on costs. There are also some really good evaluation opportunities, particularly as the article suggests the Kenyan government itself doesn't know what to do with interest rates. I can ignore exchange rates but instead focus on the possible impact on employment and general GDP growth, whilst not ignoring the ominous signs mentioned about future world commodity prices.

These are inferior goods

Given the option, consumers are willing to opt for the cheaper, unbranded version amid high economic costs.

Shows economies of scale: Coles can sell cheaper because as a chain they can source from farmers directly. This lowers their costs of production and thus lowers consumer prices.

first IA

Target date of reveal for their further plans

Showing where there is an increase in demand of the product.

The prices increased due to bad weather. The supply must have decreased as prices increased. 

One of the 4 primary macroeconomic objective

Governments set target for unemployment is about 5% each year

Bond credit rating--> BBB - has adequate capacity to meet its financial commitments

Microeconomics - Minimum price on alcohol in Scotland

Minimum price = legally imposed price floor below which that normal market price cannot fall

Consumers pay a higher price for same product

can be represented by a AD/AS graph (shift left in AD) -> leads to recession

UK was once in recession and they returned back into recession soon after

the demand of construction decreased and the AD decreases (shifts to the left)

again, there was a decrease in AD