M2016 Economics SL Mr. Friedman

This article shows how oil prices in in the United States have been dropping quite drastically which is a huge plus for consumers. However, for oil producers their total revenue has also dropped which does not benefit them. The article displays price elasticity of supply because as more and more oil is being produced, the price of oil then raises. But in this case it is the opposite.

This article basically discusses how a raise in minumum wage would affect restaurants, spcially fast food restaurants such as McDonalds. As President Barack Obama propeses to raise the minumum wage to 10$ many fast food companies disaggree him saying that their customers are price sensitive and this increase in their cost would haveto reflect onto customers which would drive them away. However data says otherwise. The article indicates that the prices of fast foods are ectually inelastic and therefore an increase in price although would mean less customer it doesn't necesserily mean less revenue

I think this article is a very good choice as it shows the effect the elasticity can have in real life situations. I think in this situation we also have to appreciate the recognition that the company Mcdonald's has ;this could influence elasticity being inelastic. As Mcdonalds is a very popular ,globally known fast food restaurant they may find that a small increase in price will only affect their demand in a small way. So like you said it doesn't necessarily mean less revenue. Jack

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 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 discusses how asking prices for London homes rose to a record this month as values increased drastically. Prices in London climbed 3.6 percent from March to an average 572,348 pounds ($958,000), due to a lack of property for sale.

This article shows how the Russia's economy is struggling due to sanctions and how that has affected BP and the lowering of oil prices. This has caused a decrease in revenue of BP from £3.7bn to £3bn. This has also resulted in share prices decreasing by 14% in the past 3 months.

Vodafone users are now faced with a possible 10% increase in price to their monthly bill payments. This increase in price will affect the demand of the Vodafone negatively. Vodafone has anticipated this and is allowing its customers to leave contracts in search of cheaper phone contracts. The PED of Vodafone is greater than one (and therefore elastic) because the change in price created a drastic change in demand demonstrated by Vodafone's poor performance in the phone market.

This article discusses how Apple has to be wary of the price of other smartwatches, because even though Apple has been used to charging whatever they want for phones and other gadgets, they are far from the first to offer a new smart watch, so they'll have to price their product accordingly.

A mass protest is being held in the Italian capital, Rome, against Prime Minister Matteo Renzi's plans for labour market reform.There are worries that this reform could cause the higher rate of unemployment to increase even more. This intern could have big economic problems for Italy. A high unemployment rate will also meaning an increase in fiscal costs to the government, an increase in social deprivation and also a decrease in the country's output of services and goods.

This article talks about how Minimum wage will not kill jobs drastically. When a government imposes minimum wage, many salaries have to be raised, and if a raise in the salary of the workers means a decrease in profit workers will be fired. Workers are useful as long as having more increases profit. This article talks about how that would not necessarily be true.

Besides posing a threat to the international community, Ebola also threatens the small businesses. A small shop, called Bridal and Formal, is one of those shops that is deeply affected by that virulent disease. Since a nurse who lives in Dallas looked for a dress for three hours, the shop is closed until the 4th of October. This information shows that ebola is one of the reasons why demand would decrease for a small business. In order to establish a new market equilibrium point, the quantity of supply in the market will be decreased, therefore the market will be fully affected by a case of Ebola in a particular area.

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.

Prices for oil, an inelastic product, have decreased leading to a decrease in revenue for the producers, leading to concerns that this might have more widespread economic ramifications in the future.

A study from the Brookings Institution, a think-tank, finds that poverty in America has become more concentrated over the past decade. During the 2000s the number of neighborhoods with poverty rates of 40% or more climbed by three-quarters. Poverty is rising in the suburbs however, and it might be because of inaccessability to good jobs - not the other way around. People cannot find jobs and although USA is 5% unemployed, inner cities and specifically black communities have a 40% unemployment rate. People are trying to get work too, there just isn't a supply of enough jobs - personally I think this is due to outsourcing, if everything just stayed in the USA then we would have thousands of more jobs available. The problem at hand is a falling in availability of jobs, along with an increased population and people searching for jobs. Due to companies trying to make more money, we have outsourced most of our available jobs in elastic goods to other countries. In this way we have ruined the economy for ourselves, or at least big companies have. Inelastic products do not have this same issue, yet they still outsource because they are greedy. Pretty crazy to think about. Perhaps if everything cost a bit more money, and we weren't allowed to outsource, then the PED would go down and people would pay more for goods because they would have more money to spend due to increase in number of workers.

The price of cigarettes has been radically increased in Australia as the mortality rate of smokers has become extremely worrying. This relates to this week's topics because it shows how raising the cigarette price in such a radical way will decrease the demand, which is the aim of health services. The PED of the cigarette is therefore elastic, as it will lower the demand more than the % change in price because it is such a large leap of price.

This article talks about emerging markets, and bail out plans

Rabobank are bearish on the global fertiliser industry.In urea, a temporary imbalance between supply and demand could put further temporary upward pressure on prices.

This article is about the problem between the demand for fertiliser and the supply in India. Since there is no budget to increase the supply, it can't satisfy the rate of demand, therefore the equilibrium can't be made.

This article explains how price changes affect the demand of a product, PED. In this case, customers react differently to price changes in beef depending on other factors. I think this article shows a clear picture of how the elasticity of demand is affected by consumers and their consumption of beef.