This article discussed how inflation has affected different factors in the Australian economy. It also talks about how their living standards are increasing, although the costs are increasing too.

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India is looking to expand the price controls they have on drugs. This would apply not only to generic medicines, but also to patented drugs. Drug companies fear this decision, as they feel that India is not protecting their intellectual property enough already. The secretary of India's Pharmaceuticals Department, Kalha, states that they need to make expensive drugs available/affordable to the poorer citizens. Bayer AG and India are in a patent conflict. India's patent authority required that the German company, Bayer, issues a license, which allows Indian generic- drug companies to sell a less expensive copy of Bayer's patented cancer drug, Nexavar. The reason for this order was due to the expensive prices of the drug and India's Intellectual Property Appellate Board are arguing the case and expecting a ruling very soon. With the price controls on the drugs, the poorer citizens would have a fairer chance and curing their sicknesses, as they would be able to afford the medication for it. So far India has 74 set prices on generic medicines but is wanting to increase this number to 348. This high amount of price control has not been seen since 1979! The Indian government believes that the prices of drugs shouldn't be driven by market forces but should be regulated instead. However, so far there are no formal regulations to the plan of the price controlling yet, as the government is still deciding of final opinions. By restricting the prices of drugs, foreign pharmaceutical companies might become upset. Tapan Ray, the director general of the Organization of Pharmaceutical Producers (internationally based) of India spoke: " any price control in that area will stifle [research and development] initiatives seriously, adversely affecting patients' interests in the long run". Novartis is a Swiss drug maker and it has been fighting for a patent on its cancer drug, Glivec, in India. In 2006 India rejected Novartis' patent application, and since then Novartis has been fighting

The government wants to implement a one dollar raise in taxes on cigarettes, in order to ward consumers off them. The government is doing so to warn how dangerous and harmful cigarettes are.They want to discourage children and teens from smoking. Another reason for the tax raise of $1.98 is to help pay the state's rising cots for health care for the poor. There was a $2.7 billion shortage in the Medicaid funding, which needs to be recovered through collecting taxes. As cigarettes are quite inelastic, people will continue to buy them even if the price increases, as they are an addictive good and cannot be put down easily. Substitutes would not be an option in this case, as there is a tax added on other tobacco products as well.

Coffee supply in Starbucks and other plantations is decreasing. The global supplies are becoming less due to shocks that are occurring because of climate change. Shocks include hurricanes, mudslides, erosions and variations in dry and rainy seasons. All of these events affect the crop yield negatively, as they reduce the production of coffee and cocoa. It is suspected that by 2050 it will be too hot to grow chocolate in the Ivory Coast and in Ghana, which are the main global producers. Not only Starbucks is affected by the climate changes but also wealthy and other independent farm plantations. Central American workers reported that they have already experienced changing rainfall patters and more severe pest infestations. The Arabica coffee bean, a specialty in Starbucks, is at great risk. Coffee is a necessity for some people and it would be a real issue if coffee disappears. Jim Hanna, the company's sustainability director, informed Guardian that the U.S. government should step in and try to reduce climate change. Gap, an American company, has already stepped in and is campaigning. There have already been 2 warnings in less than a month that coffee is at threat and therefore it is important to thing and look 10 to 20 years ahead.

As the coffee beans are becoming scarcer, the supply for coffee is decreasing. Not only the coffee supply is decreasing, but also the cocoa bean, meaning a substitute is also not an option for switching to. The price of coffee will increase and the quantity demanded will therefore decrease as well, as not everyone will be able and willing to buy coffee at the higher price. The equilibrium price will settle at a higher price, with less supply being produced. This will signal to the consumers to buy less coffee/ hot chocolate and signal to the producers to produce less. In other words, the consumer incentive is to consume less and the producer incentive is to produce less. The resources will be allocated differently, as fewer resources are allocated to the production. Coffee becomes scarcer. The marginal benefit decreases and the marginal cost will increase.

Mini Analysis: 150 words- connecting article to concepts learned in class. For almost ¼ of the world's population, the demand for water is greater than the supply available. Water is a necessity for everyone and a want for all. The prices of water are increasing, as water is becoming scarcer. For many countries such as Egypt, India, Pakistan, water is very rare and therefore has a higher price. In Switzerland for example, water is not as scarce and therefore our prices aren't as high. Although Switzerland may take water for granted, the prices are still rising, as water is running out all over the world. Primary economies are running into issues, as they are not able to harvest and produce as many crops as they were in previous years. The main problem is that there is no substitution product for water. Other drinks such as tea, sodas etc. don't count for water.