Petrol prices set to rise

The cost of a barrel of oil has risen from $40 a year ago to $80 now with the price expected to rise even further in the coming months.
These oil tankers are apparently refusing to dock and unload their contents until the price of oil rises!

Toy shortage at Christmas?!

Have toy manufacturers misjudged the amount of sales this Christmas? With the UK still in a recession toy manufacturers could have presumed that Santas budget was much lower this year and therefore produced fewer toys.

House prices rising but could it all be about to stop?

House prices have been on the rise for the last five months after a disastrous year of falls. The average price of a house in the UK in September stands at £161,816. This figure is £19 higher than this time last year. If we go back to February this year the average house price had slumped to £147,746.

Stamps to go up by 3p - Price elasticity of demand

The Royal Mail has decided to increase the price of first class stamps by 3p due to a huge hole in their finances. They are hoping the proposal will rake in an extra £100 million pounds a year. Whether this tactic is successful depends on the price elasticity of demand for the stamp. Consumer Focus believe the new prices would drive away customers meaning demand would be price elastic where as the Royal Mail obviously believe demand is price inelastic as they expect to increase revenue with the price change. Click read more for some questions on PED that would suit both GCSE and A level students.

Video starter for a lesson on the law of supply

Soon it will be time again to introduce the supply and demand diagram to your Year 10 students. I’ve always noticed pupils find the law of demand (as the price of a good or service increases, demand falls), much easier than law of supply (as the price of a good or service increases, supply will increase). This video from the BBC shows that oil producers have less incentive to extract new reserves when the price of oil is lower. It would be a great starter for the first lesson on supply.

Demand and Supply in action - cocoa shortage to affect price of chocolate

For those chocolate-lovers out there like me this item may send shivers down your spine! We are currently seeing the biggest shortage of cocoa for 40 years.

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Demand and Supply in action - fall in demand for apples

Consumption of apples has fallen by 3.2% in the last year, despite Government guidelines stating we need to have our five a day.

Demand and Supply in Action - Second hand car prices rise

We would normally expect the value of our cars to fall (depreciate) over time. This year though the reverse is happening. Due to a shortage in supply the price of second hand cars have risen.

Would you buy a car on ebay?

General Motors in America certainly thinks people will. In an attempt to recapture market share and reduce costs GM are going to sell their cars online. At first the pilot scheme will be launched in California. 

Mnemonic Monday - Factors that shift supply

Last week Innes looked at factors that cause the demand curve to shift, so it naturally follows that this week I should do factors that cause the supply curve to shift. I find students have more difficulty remembering supply factors, perhaps because it is less familiar to them.