Posting Details

I have created a separate blog for your economic assignments run through wordpress.com.   This way you can set up your own account and manage your own passwords.

The site is econjournals.wordpress.com

Setting up your account, if you did not receive the email:

  1. Go to wordpress.com and create an account.  You do not need to create a blog, just a wordpress account.
  2. Email me your wordpress username and I will add you to the blog.
To add a blog post (assignments):
  1. Log-in to wordpress.com
  2. Click My Blogs
  3. Click Posts under Caution: Economics Students at Work
  4. Click Add New
  5. Enter your assignment information
  6. Add the correct categories and tags (category would be the assignment you are posting, tags would by your first name and any relevant key words)
  7. Publish your work
To add a blog post (journal post):
  1. Log-in to wordpress.com
  2. Click My Blogs
  3. Click Posts under  Caution: Economics Students at Work
  4. Click Add New
  5. Enter your Journal
  6. Add the correct categories and tags (category would be the journal prompt number you are responding to, tag would be your first name)
  7. Publish your Journal
I strongly recommend you write your journal in a word processing program first and then copy and paste it into wordpress.  This will allow you to take advantage of the grammar and spell checkers in Word as well as create a back-up of your journal just in case something happens to your post.
Feel free to add graphs, images and videos that support your ideas.  You must include links to support your ideas.
Blog Post Specifics:
Your journal needs to be categorized.  To the right of the screen, when you are in the new journal screen, you will see a section called categories.  Check off the box of the journal prompt you are responding to.
Your journal needs tags as well.  You can tag it with key words from your post if you wish.  You must tag it with your first name (include your last initial if someone in the class shares your first name).
wordpress help 2 wordpress help 1
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Supply and Demand Assignment

 

Market: Graphics Card

Graphics card prices have been steadily increasing, higher than their manufacturer suggested retail pricing. With the climb in popularity of cryptocurrency mining, more and more individuals require graphics cards. They are an effective way of mining digital currencies such as ethereum, leading to a greater demand. This demand has created a product shortage in graphics cards, and lead to a higher price.

The demand determinant for this case is the number of buyers. The number of buyers increased because they use the graphics cards for mining, which is very popular right now. This pushes the entire demand curve to the right because of the increase in demand. The shift of the demand resulted in a shortage of product, and the equilibrium quantity and price increased.

Nvidia and AMD, two of the largest graphics card producers, have issued statements that they are attempting to fix this problem. It has been rumored that they will release products that are catered towards mining, and this should decrease the demand for the regular graphics cards, decreasing the price.

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Supply and Demand Re-do

Article: https://www.bizjournals.com/dallas/news/2018/04/02/study-dallas-rental-market-has-balanced-supply.html

Market: Dallas Rentals

Demand has been steadily increasing over the past years and supply has been increasing to match. As a result, rent has grown by 1.8 percent per year.

This increased demand has been a result of job growth. A textbook example of an increase of buyer’s income increasing the amount of people able to purchase a good, in this case, renting homes in Dallas. As this demand has been increasing, more rental housing has been built to keep the supply at the same pace. Because of the supply-demand ratios being kept much the same, price has hardly increased. Current rent rates for two-bedroom apartments are $1 100, which is less than the national average. Also, rent rates are increasing at a slower rate than the country’s average, Dallas being 1.8% and the national average being 2%.supplydemandgraph

Supply and Demand

Prices of US newspapers are increasing. A trade complaint by a paper company influenced the United States Department of Commerce to set an overall tariff at 6.53% for newsprint imported from Canadian plants. The US newspaper industry relieves heavily on Canadian newsprint, importing $1.6 billion’s worth in 2016. This has amounted up to a 20-30% increase in newsprint prices for the US.

The new tariffs, as a supply determinant, be classified as an increase in the cost of factors of production, as it would cost more to supply an equal quantity of newspapers with added tariffs. This increase in cost decreases supply, shifting the supply curve left. Although Canada is not the sole source of US newspapers, it represents a major portion, and other producers do not have the production capabilities to meet demand; therefore overall US newspaper supply decreases. However, it can be stated that specifically US-based newsprint will see a small increase in supply due to seller’s expectations that the price will rise. Demand, in the short-term, has not changed.

An decrease in overall supply results in an increase in equilibrium price.

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Article 

Additional statistics

Supply & Demand Assignment

Article: https://www.thespec.com/news-story/8335988-global-vanilla-prices-squeeze-margins-for-ice-cream-cupcake-makers/

Due to an increase in demand and a decrease in supply, natural vanilla prices are skyrocketing.

Consumers are increasingly demanding natural ingredients in foods that they buy. This includes flavored desserts like ice cream and chocolate that use the ingredient vanilla which is mainly grown in Madagascar. This increase in demand due to buyer’s preferences has pushed the price of vanilla upward, making goods containing it more expensive. About seven years ago, vanilla prices approximately increased 10% a year. Two years ago the price doubled, and just last year the price had increased to five times to what it was. The current cost for a kilogram of premium vanilla beans is $850, $830 more than it was five years ago.

In addition to rising demand, the crops of Madagascar have been severely damaged by a cyclone that passed through, destroying a significant amount of their output. Due to the number of sellers in the vanilla bean market, securing vanilla beans for operations is becoming extremely difficult, especially for small mom-and-pop shops that aren’t taken as a priority when considering the big players of the convenient food industry. Some small businesses have considered dropping items containing vanilla altogether from their menu. The cyclone of 2017 was the biggest factor in the extreme price jump for the vanilla beans. Below is a graph illustrating these changes in the vanilla bean market.

Supply & Demand Assignment Graph

Supply and Demand Assignment

Source: Red chilli prices crash 40% in two weeks

Market: Chilli

Chilli prices in Telangana, India have dropped by over 40% in two weeks due to a surplus of the good.

The chilli market in the country has increased, on average, 50,000-60,000 bags (of 40-50 kg each) a day. This means there has been a large increase in the number of sellers in the market. This moves the supply curve to the right and creates a surplus in the market, dropping the equilibrium price of chilli dramatically. The price dropped from 12,500-13,000 about two weeks earlier to 7,000 a quintal.

Chilli market Supply and Demand Assignment

Supply and Demand Assignment

Source: https://www.channelnewsasia.com/news/singapore/sugar-cane-juice-prices-increase-amid-shortage-in-malaysia-10120188

Market: Sugar cane juice

The price of sugar cane juice in Singapore has increased due to a shortage of sugar cane.

This shortage is due to several factors, such as a decrease in workers at plantations because of legal issues (cost of factors of production increase) and farmers deciding it’s more profitable to focus on other crops such as durians or pineapples (decrease in number of sellers of sugar cane). Furthermore, a flood and a fire at two of the biggest sugar cane plantations who supply to Singapore have brought them extra costs and a decrease in sugar cane.

Sellers have increased their sugar cane juice prices because of the increase in sugar cane prices (which were S$14 in December, and are now S$26, increasing the costs of factors of production of sugar cane juice, decreasing the supply). One seller of the popular drink raised his price from S$1.50 to S$1.70 to keep the same profit margin. Sugar Cane Supply Curve Shift

Supply and Demand

Market: Coffee

Source: Coffee prices go up as minimum wage rises

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On April 1st 2018, the government in New Zealand raised their minimum wage rate $0.75, from $15.75 to $16.50 per hour, benefitting 164,000 workers. In response to this new minimum wage, Mojo Coffee, a coffee house that has 31 locations around the country raised their coffee prices per cup by around $0.10.

In this situation, the demand determinant, buyer’s income has been affected, since the minimum wage in all of New Zealand has been raised significantly. This then will make companies increase their product prices, in this case, Mojo Coffee increasing coffee pricesCoffee in this sense is a normal good, since for the past couple of days, Mojo Coffee has had positive customer feedback, and satisfaction, even after the increase of coffee prices.

This is why the demand curve shifts to the right. Now the new equilibrium point has both more quantity supplied at a higher price.