Group items tagged

This is an article about apple's newest product 'Apple Watch'. The author simply brings a a topic that bothers me too on to the table and critizices Apple on that which is that this product being compatible with only other Apple Products. More than that it is compatible with the "newest" Iphones and very expensive. Mr Roy simply says that this is a missed opportuinity for Apple because if they had lowered the price and made their product for non-apple users too they could have doubled their addrasable market. So, I believe this is an article about opportunity cost because Apple has lost its opportunity open up to millions of extra buyers in order to gain more money. Their opportunity cost was their addressable market. (Sorry everbody, I added this 2weeks ago, but apparently I forgot to share it, so here we go :)) Sinem Sınmaz

Hey, I like that you've linked this article with the opportunity cost however I also think that this article links to the Law of Demand as well since the demand curve of the Apple products experiences change in 'ceteris paribus' determinants.The launching of a new Apple watch has broadened the targeting costumers of the Apple products, since now they also have support from the buyers who would rather buy an expensive smart watch, than a tablet or laptop. This is similar to launching the IPod in 2001, when Steve Jobs attracted more buyers who were music lovers, and thus increased the demand in the product without decreasing the price of the same. This change has an effect on the demand curve, because it shifts the curve to the right since the demand of the Apple products increases. Andjela :)

Despite being partially right about claiming if they have lowered the price they could earn more, I also think that by increasing their prices and only providing compatibility between their own devices make it compulsory for people to buy not 1 device from Apple but more since they are only compatible with each other.

In India, bananas, apples, and grapes have been growing price. As the law of demand states, this would lower its demand. Oranges are growing in demand due to its low price. The changes in demand of fruits in India describe the relationship between demand and price.

Hey, I like your article because it really links to the Demand topic we did last week. The article is clearly describing the increase in demand of oranges because its substitutes' (apple, grape, banana, etc) experienced the increase in price due to the damage of plantations, and thus their demand had decreased as well. The price of oranges in this part of India stayed the same (Rs40 per kg ), and the price of its substitutes increased from Rs40 per kg to Rs50-60, per kg. The orange demand curve will be shifted to the right because one of the 'ceteris paribus' determinant has changed, and the apple, banana, or grape curve will experience the movement along the curve (the slope) as the price will go up and quantity will decrease. Andjela :)

Hey, I also enjoyed the article even though I wanted to share this article and got a little upset when I saw you have already come across with it. Anyways, I think this is really a good and pure example of the law of demand as you state since the damage on the substitutes of orange increased their price. But I also think that enterpreneurs should aim to supply the substitutes because I think that organic food industry is a fragile market and they should somehow balance the prices. But until then, I guess I'll be okay with oranges :) Alp

The oceans are a crucial for human life, and their everyday functioning. The oceans produce $3 trillion of goods and services each year and are untold value for the Earth's ecology. Despite this fact, humans continue to damage this valuable source of life, and the nature is damaging us back by the melting of the Arctic ice in summer, the spread of oxygen-starved dead zones and the death of coral reefs. An example where the nature is harming us back can be seen in Thailand where the coastal mangrove swamps were cleared to set up shrimp farms. However, the ocean storm surges in 2011, rushed in to flood the country's industrial heartland, causing billions of dollars of damage causing the market failure.

This is an article about a firms's trial to solve the gap of supply for the gloves in India. Kerala is the name of the firm which specializes in centrifuge latex production and by that they get the chance to create the largest market around to produce the gloves for surgery and examination. However, despite making a really though progress, they can only achieve to be the 25% of the required amount of supplies. I think this brings up the idea of the Law of Demand and also the "Giffen Goods" term since there is a huge need for this industrial product and there is no other maintaining enterprise, the prices increase in the same proportion with the demand. This is an extraordinary situation of course and it needs to be handled as fast as it can be. Alp Pişkin

This article talks about a new Kerela firm that i set up for glove manufacturing. Since there is a huge gap between production and demand in India (about 75%) this firm decides to set up the greatest glove manufacturing unit.

This article demonstrates elasticity of demand for oil. It also has a nice explanation of elasticity

Tutar, I very much agreed with you here. Gasoline is a great example of Inelastic demand in a real life situation. The price for Gasoline is very rigid, gosline is a necessity to many peoples lives.In this case an increase in price will mean an increase in revenue. There is a positive relationship between price and total revenue. From the supplier's viewpoint, this is a highly desirable situation because price and total revenue are directly related; an increase in price increases total revenue despite a fall in the quantity demanded. This inelastic demand for the suppliers is a highly desirable situation. An increase in price will increase total revenue despite a fall in the quantity demanded. So theoretically Oil companies could charge astronomical prices and get away with it !!

This article concerns the elasticity of oil supply falling due to the time it takes to acquire it and the difficulty to get it. More oil wells are needed and therefore makes the supply extremely slow because of the time it takes to drill. Because of this, the oil supply takes a long time to react to price change in the economy, making it less and less elastic.

(CNN) -- The once-powerful Hurricane Odile weakened to a tropical storm as it worked its way across the Baja California peninsula causing the severe damage at the airport in Los Cabos, Mexico while 15 000 tourists were in the resort nearby. Since the hurricane affected the tourist resort, the prices in the resorts around the area will go down however the demand will go down as well because of the newly set reputation of that particular area. Also, the prices of the plane tickets will increase, together with the demand because tourists as well as the locals want to evacuate as soon as possible from this area. Thus, this article is an example of Giffen good phenomenon.

The prices of coffee will be rising soon in the $80 billion U.S. coffee industry due to the cost of arabica beans rising. According to Paul, the price elasticity of demand for coffee is very low because people will not substitute their drinks such as soda due to higher prices. Arabica beans are the most widely used beans in the coffee industry and they even accounted for 59 percent of the world's 153.3 million bags of coffee output last year.

The article that I bookmarked is focusing on coffee in the US Market. Although some say that the price of arabica beans are likely to flame, the suppliers of coffee are not worried. The reason is definitely that coffee is price inelastic. The article also give some insight into the consumer's point of view. When they are asked if coffee has another substitute, they rigidly say "NO!". Being aware of its addictive nature, Starbucks is calm that any price change wouldn't affect its revenue and actually it would get the benefit of such change since coffee is inelastic.

This article identifies the problem associated with over-fishing caused by the tragedy of the commons.

This article not only gives brief information about the Tragedy of Commons but also considers the daily applications of it. It talks about the current market failure in today's oceans. It talks about the loopholes of the Law of the Sea, whereas it considers the possible solutions to that problem.

IN 1968 an American ecologist, Garrett Hardin, published an article entitled "The Tragedy of the Commons". He argued that when a resource is held jointly, it is in individuals' self-interest to deplete it, so people will tend to undermine their collective long-term interest by over-exploiting rather than protecting that asset.

This article talks about the falling price of gasoline despite the fact that Middle East is in a chaotic sutiation. The author shows that the prices have fallen to their lowest level in Semtember in four years.The reason for that is because the demand has fallen dramatically after the end of summer driving season and the usage of smarter and environmental-friendly cars has increased over time. With the decrease in demand and increase in supply the prices are expected to fall until December.

This article discusses the relationship between gas prices and the crisis related to the Islamic State. Islamic State's major source of fund is from oilfields in middle east, and thus has great influence over the worldwide oil price.

This article suggests how individual quotas were introduced due to the overfishing in the sea, which were aimed to better the situations. The individual quotas awarded the fisherman the right to catch a certain percentage of the total annual allowable catch. However, these tradable quotas caused great economical and ecological harm as big cooperations bought a majority of the shares. The article shows the different incentives taken by citizens and individual fishing operators and their associations to solve this problem.

Russia's economy is suffering from falling oil prices as oil revenue makes up about half of the state budget revenue, while the sanctions imposed by the West in response to Moscow's policy toward Ukraine have almost shut the global financial markets to Russian business. Since oil has the inelastic demands, the fall in price of it will proportionally change the quantity demanded, however if the Russian business decide that oil is not profitable business anymore, they might switch to its substitutes, or if the supply of oil significantly decreases during next few years because of the fall in price of it, the demand for oil might decrease as well and people will again consume its substitutes, such as wood or gas, in greater quantities. If low oil prices and Western sanctions persist for some time, Russia's economy and budget will have to optimize their spending, and concentrate only on profitable budgetary programs, which will not have only major consequences on Russia, but the Europe as well as Russia is one of the main oil suppliers.

This article talks about the price control put on fruits in Egypt to ensure that consumers can consume fruits at low enough price.

This article is about the price control on vegetables in Egypt. Apparently vegetable prices increased ver much recently in Egypt, therefore government has decided to put a price ceiling to these goods, to keep consumer expenses down. THe article talks about another time such a control has taken place, but it says those times (1970s)fruit and vegetables often disappeared from the marketplace into the black market so the government had to moce the price control on1980. The rationale behing this control is explaine as following in the article "The ministry said it would also work to lower prices by increasing the amounts of produce available in state-run cooperatives and ministry of agriculture outlets and by sending lorries to deliver fruit and vegetables to poorer neighborhoods." PS: Sorry for the late upload...

This article focuses on the variable that influence the supply and demand of olive oil. the European Union produces more than 80% of all the olive oil in the world. This article tries to prove that the price of crude does not impact the supply of Olive oil. We also learn about the supply elasticity of oil.

This articles talks about how every EU country's economic growth production and crucial is to the Euro-zone for enhancing the continent as a whole. However, Germany which is of course, one of the EU's leading country in economic growth is now declining constantly. This is will reduce general aggregate supply in EU.

I think this article is really interesting as this is a current economic problem that could affect me as i live in the uk which is also part of the EU. A danger is that if the german economy slows then this could be damaging for the UK's net exports. We currently Germany biggest trade partner. The likelihood would be that consumer spending would lessen as consumer confidence and expectations of the german economy would decrease, consequently this could mean that Germany will import less from the UK and this potentially having consequences for the UK's AD and economy.

This article discusses the previously strong position of cigarattes in economy and their place today. Cigarattes are considerd to be inelastic since they are highly addictive. However over the lst couple of years their elasticity have göne form -0.3 to -0.8. The article discusses how E-cigarattes have become increasingly popular over the years. The author states "E-cigarettes, however, could undermine the cross elasticities that Big Tobacco firms enjoy between traditional cigarettes and smokeless tobacco" and discuss cross elaticities as well as price elasticities of tobacco in this article.

Here I found an article that highlights the potential economic threat of Emirates in the American Market. This article basically suggests that the demand for the flights in the US is really high, therefore, Emirates wants to initialize new flights to the US, however, Delta and American Airlines are strictly against the presence of Emirates in the American market. Thus, this article shows how markets can be competitive and substitutes could affect the whole market and prices. It's undoubtedly true that the other commercial airlines should lower their tickets' prices in order to gain more quantity of demand. That's why, the market would be more competitive if Emirates expands in the USA.

This article talks about how a new Indian prime minister, Modi, benefited from successfully predicting the oil market. The oil prices dropped significantly after the year of 2010, and the Brent crude oil became the cheapest of all the oils. This means that the demand for it is also the lowest, however since Modi carefully observed the demand and supply of oil, he concluded that demand and supply haven't changed much, however the price did get lower. Thus, he increased the prices of oil, trying to reach the state of equilibrium.

This is an article from last month, and I took it from "The Economic Times". It talks about how India could face water scarcity in the near future due to their growing population.

I have chosen this topic because it emphasizes the importance of balancing the number of births per year. It can be seen as a really good thing of increasing the number of your race, but it can be a big problem if the population get out of the control and limits the water per people in the country

India is in danger of moving towards water scarcity conditions as per capita availability of water is reducing in the country, due to variations in rainfall and increase in demand for water from industries.

This article is about if economic uncertainty make you save more - or spend more. It suggests how the answer may depend on your childhood experience and explains why poverty can sometimes be difficult to escape.

This article, by The Time, is considered with the idea that whether economic uncertainty make you spend more or not. The author directly suggests that it depends on the childhood experiences that you went through. Therefore, the article shows how two experiments proved that poverty is hard to escape. The participants in the experiments were forced to make 20 decisions which include a decision between recieving $30 right now or $41$ later. They later proved that poor ones take the money immediately where as the rich ones take the money after.

Government imposed carbon taxes in Australia, in order to prevent the climate change. This will have the major influence on manufacturing and other business in Australia, especially the tourism. It is estimated the carbon taxes will "add $115 million a year to the bottom line costs of hotels and motels", due to the increase in additional costs such as energy bills, food, transport, linen and other expenses. The demand for the tourism in Australia will thus greatly decrease, as the expeneses will increase as well due to the large taxes imposed on the carbon "also Australia's carbon tax places tremendous pressure on Australian manufacturers and inevitably leads to job losses and business closures"