ZIS IB Year 2 2013-14

The article discusses the idea that in the coming 20-40 years the demand for orange juice will almost double, and that the orange market, as well as the orange juice market must be prepared to supply enough products in order to satisfy the demand for orange juice. Although the citrus nurseries in Florida as well as South America are producing massive amounts of oranges in order to supply enough to orange juice firms, it is currently not enough to satisfy the growing population. It is estimated that global population will increase by 2 billion in the next 40 years, meaning the demand for orange juice will increase substantially. As a result of this huge increase in demand, which the American and South American markets alone cannot satisfy, various other markets worldwide, such as the Asian market, are hoping to move into the orange juice industry, in order to seize the opportunity and make more money by providing the product.

In the case of the orange juice, the equilibirum price and quantity will both be increasing, as there has been a sudden shift in demand due to demographics and a projected increase in global population. As a result, producers will see this increase in demand as an incentive to produce not only more orange juice, but also grow more oranges. Consumers on the other hand, will either look for substitute goods or ration the product as there has also been an increase in price, indicating the scarcity of the product. This shift will have a large impact on other markets as well. As the price for orange juice and oranges is increasing, consumers may look to consume apple juice or other fruit juices instead.

RIM, the Canadian company that developed and designed the Blackberry smartphone devices released from 1999 onwards, published revenues and profits below the analysts' estimates that were made earlier on this year. According to Bloomberg, RIM's share of global market decreased to a mere 8.2 percent in contrast to the 14 percent they obtained in the previous year. This decrease in global market share can be traced back to the skyrocketing iPhone shares, which simultaneously rose from 16 percent market share to 24 perfect. With so much of the consumer demand shifting towards iPhones and alternative smartphones, the consumer demand for Blackberries are decreasing, thus in turn lowering the annual revenue and profit of RIM. Another way this article relates back to the Economic concepts we discussed in class would be the market structure of cellular phones. Seeing as RIM's global market shares' decrease was so closely correlated to Apple's iPhones market share increase, we are looking at a low number of cellphone producers with large global market share percentages. We can also establish that they produce either similar or slightly differentiated goods, which concludes that the type of market structure being discussed in the article would be an oligopoly.

G-7 call on oil-producing countries to increase their oil output in order to prevent high oil prices. The G-7 countries are prepared to call upon the International Energy Agency in order "to take appropriate action to ensure that the  market is fully and timely supplied." The IEA's countries supplied 60 million barrels of crude after the Libyan output was disrupted after the armed uprising. Oil prices have advanced 24 percent since reaching a 2012 low in June as stockpiles fell. U.S. authorities haven't contacted the IEA on the use of emergency oil supplies.  The U.S. has 727 million barrels of petroleum in reserve. Rising consumer prices have dented consumer confidence in gasoline, threatening to curb spending that accounts for 70 percent of the world's largest economy. The average price of a gallon of regular gasoline has increased by 23.5 cents this month. 

The demand of Fertilisers in India will drop by a fifth resulting in a demand of 45 million tonnes in 2012/ 2013 worth of fertilisers. One reason for this sharp decline in fertilisers is the cut in government subsidies to the industry which is creating a large fiscal distress for the state. Through the cuts in subsidies prices for fertilisers have increased and demand has been reduced. Another factor in the reduction of demand for fertilisers is the lack of rain meaning that investing in fertilisers is very risky for farmers in case it doesn't rain.

The demand on the curve would decrease, therefore the price would decrease and the scarcity would decrease because there would be more supply in comparison to the desires. Although there is a price decrease consumers would not raiton this good because it is mainly used by producers that need it, the farmers, who reduced their supply of food due to decreased subsidies and draught. Also, suppliers of the fertilisier would produce less because the profits gained from supplying fertilisers is reduced. Allocations to this resource would also decrease because suppliers produce less and might move their production to another good.

This articles talks about the decrease in demand in the coffee production. A decrease in the price of a cup of Joe, shipping coffee took a hard hit with prices to move a crate of coffee has increased to 6.8% more. The global economy has dropped due to the worsening debt crisis in Europe, where thirteen countries are slowly collapsing. European countries are unable to afford coffee, which is why British drinkers had to cut back in the coffee consumption by 6.7% in 2011, while the demand fell in 2.6% in Spain and 1.6% in Italy. Brazilian coffee production have expanded field for production and increased the use of fertilizers in response to last year's high prices. The Brazilian farmers are holding off from selling the product due to that they are waiting for the prices to recover so that sell larger quantity of coffee.

The demand of coffee is decreasing due to that the import prices have increase to 6.8%. The coffee market has decreased because the prices of the good have increased. The overall demand for coffee has decreased because producers now face higher cost of production. Since the expense of coffee has increase consumer incentives decrease. Since the demand of coffee has decreased other markets like tea, energy drinks have increased because demand for substitute goods increased. Producers want to minimize production cost while maximizing profit.

In this article it talks about the issues of supply of gold. Over time a lot of mines have been emptied and now there is a problem that the product will become scarce and gold prices will increase drastically. since there is not very much gold circling around different mines, there is less to be found. The problem is also that the economy is increasing, new mines are made and people have to be trained in mining and some specialized gold makers moved to these new gold mining cities. The average of needed gold in the world is estimated to increase 6% by 2016 which is a lot. A lot of the pure gold has been mined and the not so pure gold is not as profitable. 

The summer movie season reached a low with fewest movie tickets sold since 1997. Despite major hit movies such as "The Avengers" and "The Dark Knight Rises", the coming summer is supposed to fare even worse. By the end of Labor Day weekend, an estimated 529 million movie tickets will have been sold in the United States, almost 100 million fewer tickets than a decade ago, when 629 were sold. Partially due to increasing movie ticket price, movie ticket revenues dropped by 4.5%. Despite the increase in price affects the attendance to movies, analysts suggest that increasing the prices is the solution for struggling movie businesses. The movie business must be on the right track again, already having higher revenues and attendance than by this time last year.

The consumer preferences have changed with the slight rise in prices, causing a decrease in demand. The decrease in demand demonstrates that the consumers are losing incentive to buy as many movie tickets and causes a shift of the equilibrium price. As a result, consumers have incentive to ration their spending on cinema tickets. The producers begin to produce less at higher prices and create a rise in allocation of resources to movie-making to increase demand for movie tickets.

The article talks about future trends in demand and consumption of food in the future. The graphs portrayed in the article, show the estimated increase in food demanded over the next 10-15 years. This has to do with the fact that the population is continuing to grow significantly in the near future. The problem with this is that while more food is needed, many countries have little room for improvements. This will make them rely heavily on imports in the future as they are not able to feed their growing population. The biggest problem is that if the food production is not increased significantly over the next years, there might be a global shortage of food. 

The example of food is very relevant when talking about this topic. As the worlds population, the food becomes more scarce, the demand rises. This causees the price of food to increase. Usually, this would cause many people to allocate their resources towards the food production. Currently however, despite rising prices of food, it is still more profitable to produce something else. This causes the food production to be lacking of food, which causes the price to rise even more.

In this article, the demand and future of Intel's Ultrabooks will rise prosper, considering that this product had a weak entrance given its high prices. Intel has slipped with its market share, coming from as high as 87% to 84%. The way that Intel is planning to retain their lost market share and stay ahead of their only real rival, AMD, is by lowering the price of their ultrabooks significantly. Yet despite the potential threat and consequent loss in market share, the people at Forbes feel Intel will regain its dominance in the notebooks and microprocessor market.

Since May 2012, the price of crude oil has fallen from $106/barrel to $78/barrel. For the first time in over a decade, the supply of crude oil has exceeded the demand for it, meaning that the price for crude oil is likely to drop even more. The reason for this increased supply has to do with technological advancements which have enhanced the production of crude oil. Some of these technological advancements include the use of long-reach horizontal well bore technology and multi-stage hydraulic fracturing. However, the price of oil cannot drop below the production costs for too long, otherwise, oil firms would go out of business. It is predicted in the article that the price for oil will not drop below $72/barrel, as the production of crude oil is currently at about $60/barrel. From the article, it can be deduced that the massive increase in supply of crude oil is due to technological productivity, which is allowing for far more oil to be supplied.

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(Nationwide, hiring has...) WASHINGTON: Unemployment rates rose in more than half of US states in July and fewer states added jobs, echoing national data that show the job market may have lost some momentum. The Labor Department said Monday that unemployment rates increased in 28 states.

By Christopher S. Rugaber, Associated Press Posted: 08/22/2013 08:48:41 AM MDT WASHINGTON - The number of Americans applying for unemployment benefits rose last week after reaching the lowest level in 5 ½ years. But the broader trend suggests companies are laying off fewer workers and could step up hiring in the months ahead.

Germany's low unemployment rate hides real hardship

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Half the Saudi population is under 25 years of age. this poses a great opportunity to expand the economy of Saudi Arabia, with the new idea that the young workforce brings with them. At the same time it poses a threat if the government does not accomplish the task of creating enough working spaces for the large group that will enter the labor force in the next 10 years.

Half the Saudi population is under 25 years of age. this poses a great opportunity to expand the economy of Saudi Arabia, with the new idea that the young workforce brings with them. At the same time it poses a threat if the government does not accomplish the task of creating enough working spaces for the large group that will enter the labor force in the next 10 years.

In this nes article it talks about the great problem that Spain is facing in the recession regarding unemployment. They do mention that even though unemployment has dropped from 27.2% to 26.3%.through this we can see that maybe some figures with regard to unemployment could be seasonal as the unemployment figures dropped during strong tourist season. Neverhteless most of the people without jobs have been unemployed for over a year which means that a lot of this unemployment is cyclic, which we can see as spain is in the middle of a terrible recession. Even though the Spanish economy is starting to experience slight profit and growth, they do experience long term issues in regard to the high youth unemployment that is at 56%.

The happy news is that the American economy is producing more jobs and the unemployment rate is continuing to fall. The less happy news is that, in the words of economist Gary Burtless, this is happening "at a heartbreakingly slow pace." This is how the article starts. According to Burtless, employer survey show that payroll have been rising about 190,000 a month, fast enough that we would expect unemployment to fall. However, the article states that it would take about 5 or 6 years to reach unemployment. Futurists envisioned a world where the wealth produced by an economy required few laborers. The truth is that in the plant today, the rich are richer and everyone else is living with less.