The demand of iPhone.

     Nowadays, Apple has revolutionized how a smart phone should be by releasing the iPhone. In my following result, the most popular response was iPhone at around 87% out of 100% are very interested in building this product. iPhone have held those first and second slots since June 2010 .The demand of iPhone is increasing every day because there are some factor to influence to their demand. Therefore, we are questioned to find out how the factor to influence the demand of iPhone?

 

The main factor to influence the demand of iPhone is taste and preferences. For example, if the consumer prefers iPhone over than Samsung. The demand for iPhone increases even though prices of both smart phones remain the same.

 

Next, price of related goods also one of the factors that influence the demand. Complements are goods that can be used together. An increase in the price of one result in a decrease in demand for the complement.

 

Lastly, the factor to influence the demand is level of income. Even price of the good is unchanged, if the level of income is high, the demand for a particular good will be higher, vice-versa.

Source:

1.  www.apple.com 

 2. http://bgr.com/2013/03/06/apple-growth-analysis-361685/

                                                                                                         Entry By: Chee Hau  

Aggregate demands are needed more in the Economy World these days!

     Aggregate demand is defined as the total desired purchases by all buyers in an economy. It is also the total quantity demanded for all goods and services at a different price level at a certain period of time. Aggregate demand is a downward slopping curve as refer to the diagram below. 

     Based on the article, the economy world these days need more aggregate demand as the curve determines the real GDP and stimulates the economy at a certain period of time. By the aggregate demand curve, governments can determine the level of unemployment rate and the status of the economic growth. Therefore, after determining the problems the government will have a solution to face the economy problems that the country is going through. Not only that, it is stated in the article that the aggregate demand curve can also improve the countries inflation or recession problems as government will implement such policies. Sooner or later at a certain point, the world economy will definitely be growing rapidly but in reality right now our economy is going through a very bad time. In conclusion, if there are more aggregate demand models around the economy world, economist will be able to determine the economy status easier and faster before the economy gets worsen.

Sources: http://articles.economictimes.indiatimes.com/2008-04-07/news/27693302_1_world-economy-negative-growth-nature

                                                                                              Entry by: Ika Adnan 

 

 

The end of elastic oil.

     Price elasticity is defined as a measurement of the responsiveness of people to changes in the economic variables. Referring to the article, the price of oil has been increasing rapidly but the fact is we are not even running out of oil. In relate to the economic concept, there is a large percentage change in the quantity demanded for given percentage change in price for the oil. Therefore, most of the governments around the world consider or categorize oil as an elastic demand. In other words, the demand for oil will still be constant or increased even tho the price itself rise as high as the firm sets it up. The reduction of fuel usage can happen due to most people with cars or machinery are jobless and they have insufficient funds to buy oil or fuel. This is not beneficial to every government as this can be harmful to the countries economics.  A decrease in demand due to high price levels is also known as demand destruction. The graph below represents the elastic demand toward oil nowadays.

     Based on the diagram above, the change in the price of oil is more than the proportionate change in the quantity demanded. Therefore, Ed > 1.

 Source: http://www.forbes.com/sites/tomkonrad/2012/01/26/the-end-of-elastic-oil/

                                                                                      Entry by: Ika Adnan