Microeconomics
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Farmers protest against subsidy cuts

Farmers protest against subsidy cuts | Microeconomics | Scoop.it
Farmers' leaders urge the government not to implement plans to cut agricultural subsidies by 15% and transfer the cash to wildlife protection in England and Wales.
Rahul's insight:

farmers are worried about government plans to slash agricutural subsidies by 15%, as this will result in a higher cost of production for them, meaning their profit will be reduced, unless they shift the cut in subsidy over to the consumer by raising their prices proportionally

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Christmas rip off: Shameless retailers increase price of toys as demand makes stocks run low

Christmas rip off: Shameless retailers increase price of toys as demand makes stocks run low | Microeconomics | Scoop.it
High street chains and website retailers have been accused of artificially fuelling demand by offering special toy promotions
Rahul's insight:

In this article, producers, upon realising the excess demand as well as diminishing supply, respond by upping the price, in order to allocate the scarce resources apropriately to the rising demand

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Last chance Madrid tickets sell out

Last chance Madrid tickets sell out | Microeconomics | Scoop.it
AFC Bournemouth's friendly with Real Madrid sells out after fans queued overnight to get their hands on a second allocation.
Rahul's insight:

this is a key example of excess demand, clearly represented by the extent fans are willing to go in order to secure tickets for the match. This excess demand will probably affect the resale market as a consequence, will prices consequently going through the roof in order to accommodate the demand

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Tobacco tax hike to hit disadvantaged hardest, says doctors' group

Tobacco tax hike to hit disadvantaged hardest, says doctors' group | Microeconomics | Scoop.it
A doctors' lobby group has warned that a tobacco tax that comes into effect on Sunday , will hit low-income people and those with mental illnesses particularly hard.
Rahul's insight:

despite the increase in tax for tobacco intended to reduce health risks, it appears that there more disadvantages than simply "withdrawal symptons". Those with lower incomes will be affected worst, as cigarettes comsumer a larger proportion of their income. Should they be unable to kick the habit in response to higher prices, they will ultimately be left with even less disposable income

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Cocoa price soars as chocolate sales up

Cocoa price soars as chocolate sales up | Microeconomics | Scoop.it
The cost of cocoa beans has soared since the start of the year, signalling a rise in the price of chocolate for consumers.
Rahul's insight:

with the weather getting colder and christmas approaching, demand for chocolate has soared, causing the price to rise and excess demand. However this surge is not stimulating growth in the production of cocoa, causing scarcity and a fight amongst the retailers for the allocation of cocoa resources. 

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