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They're not just for cockneys! Sales of jellied EELS booming outside London for the first time as shoppers cut costs

They're not just for cockneys! Sales of jellied EELS booming outside London for the first time as shoppers cut costs | Microeconomics | Scoop.it
Tesco has seen its jellied eel sales grow by 35 per cent in the past two years since it began selling them in places including Scotland and Northern Ireland.
Fola's insight:

The increase in demand for eels are mainly down to people cutting their food costs, indicating eels are more of an inferior good. This means that its income elasticity of demand would have negative values. It is believed that the number of eels in the Thames has dropped by 98% in the past five years, therefore the price elasticity of supply is shown to be more inelastic as catching eels is getting harder and harder to do with reduced numbers


 
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Young women 'trapped' in low pay

Young women 'trapped' in low pay | Microeconomics | Scoop.it
Young women are increasingly likely to be trapped in low-paid jobs such as waitressing or shelf-stacking, according to a TUC report.
Fola's insight:

One reason being given for the trend is the reduction in the number of better-paid jobs. However gender inequality still does exist with firms and businesses more willing to hire males, even though official figures indicate that young women are better qualified than young men

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Npower to raise prices by 10.4%

Npower to raise prices by 10.4% | Microeconomics | Scoop.it

"Energy firm Npower is the latest supplier to announce price rises, with a dual-fuel bill to go up 10.4% from 1 December..."

Fola's insight:

Npower have raised their prices due to an increase in their cost of production - there have been cost increases in delivering energy to homes, fulfilling government schemes and raw materials. On a supply curve this will cause an inward shift due to a decrease in supply. As supply has decreased, Npower need to increase prices in order to maintain their profits

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Crude oil prices down on weak US demand

Crude oil prices down on weak US demand | Microeconomics | Scoop.it

"US crude oil prices stayed below $100 in Asian trade today as investors digested a steep increase in stockpiles following slow refinery activity, analysts said..."

Fola's insight:

A classic example of excess supply. The price of crude oil is reduced due to the lack of US demand - this is to create a balance in the market (market equilibrium), quantity demanded = quantity supplied

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Big changes for renewable subsidies

Big changes for renewable subsidies | Microeconomics | Scoop.it
The government is to make major changes to the way it subsidises renewable energy with more emphasis on offshore wind power, the BBC has learned.
Fola's insight:

The subsidy will encourage more long-term investment on offshore wind source. With onshore wind farms making a lot of noise and interfering with radio transmissions, it seems like a good idea. However onshore wind is easier to connect to the grid than offshore wind farms so the electricity is cheaper to produce and for offshore wind farms building the foundations can be expensive if the water is deep and the bottom soft

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BlackBerry BBM Launches On Android And iPhone

BlackBerry BBM Launches On Android And iPhone | Microeconomics | Scoop.it

"BlackBerry rolls out its BBM service on other operating systems, but users who did not pre-register will have to wait in line..."

Fola's insight:

Android and iPhone users will have to queue to download BlackBerry's BBM messaging app after it launched to unprecedented demand - excess demand

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Productivity rise boosts recovery hopes - Telegraph

Productivity rise boosts recovery hopes - Telegraph | Microeconomics | Scoop.it

"Productivity in the UK labour market has risen for the first time in two years, delivering a fresh boost to recovery hopes and raising the prospect that interest rates will remain low for longer..."

Fola's insight:

An increase in productivity in the UK labour market will cause an outward shift on a PPF curve - meaning increase in efficiency, increase in maximum potential production and higher living standards

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China Metals Demand Slower, Not Lower

China Metals Demand Slower, Not Lower | Microeconomics | Scoop.it

 

"The international commodities consultancy reminds us that China’s demand for base metals – aluminum, copper, lead, nickel and zinc – is still growing at 5% to 8% per year. That’s slower than double-digit expansion between 2008 and 2013 – the go-go years for China’s economy..."

Fola's insight:

Although demand is not lower, it's slower hurting big exporting nations such as Brazil and Indonesia. Many new nickel mines have come on line recently – a response to the massive Chinese demand of recent years. This supply has outstripped demand, causing excess supply, meaning that nickel prices are lower in order for producers to sell off the excess and so demand expands and supply contracts until equilibrium is reached

 

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