Price Setting

Market Price (Equilibrium Price) for a particular good or service is affected by both the supply and the demand of it. As the demand (quantity desired) increases, so does the price of the item. As the price (what people will pay) increases, so does the supply of the good or service. Think ... more people want to make to get in on the money making. Here is your task:

1. Choose a product with a price that has fluctuated significantly (changed a lot).
2. Specify the price change in dollars (both current and past price).
3. Define the time period over which the price changed.
4. List your references. (Where did you find the info?)
5. Your good or service must be unique (nobody else has already commented on it) for full credit.
6. Write a brief explanation of why you think the price changed.
   
7. Label your answers. See Mr. Turton's example and tips below.

EXAMPLE

• Good - three-quarter-inch plywood
• Time Period - 22 months
• Source - http://www.sptimes.com/2004/04/14/Business/Wood_prices_could_boo.shtml
• Reason - The price increased as demand increased due to rebuilding related to the war in Iraq and natural disasters like Katrina.
  

Tips for making a comment:

• Open a blank Word document to collect your info.
• Copy your info and paste it into the Word document. Save it - just in case.
• Format it like my example above.
• Copy your info.
• Open the comment box in the blog.
• Choose Edit - Paste from the Toolbar.
• Add your name and Publish the Comment.

Exchange Rates

List the 1990 and 2005 Exchange Rates of one of the countries below and one that is not listed. Specify the currency used. Do not pick a country already commented on by another person for your second country. See my example for the format and level of detail expected in your comment.

Explain why this change occurred over these years.

What happens to the value of a monetary unit when the demand for the currency increases? (hint - see price setting post)

• Australia
• Brazil
• Canada
• China
• Germany
• India
• Japan
• Mexico
• South Africa
• United Stated
• Zambia
  

Example:

• Saudi Arabia - Saudi Arabian Riyal
• 1990 3.745 per U.S. Dollar
  
• source:http://intl.econ.cuhk.edu.hk/exchange_rate_regime/index.php?cid=21
• 2005 1 USD = 3.7505 SAR
• Source: www.gocurrency.com
• I think that the political stability of the Royal Family controlling Saudi Arabia and the constant international demand on their primary export (oil) has allowed the Saudi Riyal to remain stable compared to the U.S. dollar for the past 15 years.
  

Gross Domestic Product

• List the 1990 and 2005 GDP of one country. Do not pick a country already commented on by another person.
• Give a possible reason for the change.
• Site the source of your information.
• Use my example and tips below as a guide.
  

EXAMPLE

Ecuador

2005 GDP: $32 billion

http://www.state.gov/r/pa/ei/bgn/35761.htm

mid-1990s GDP $20 billion

http://imf.org/external/np/speeches/2000/051900.htm

Reason: In the mid-1990’s there was political unrest and a massive over-depreciation of their currency.

Tips for making a comment:

• Open a blank Word document to collect your info.
• Search for your info.
  
• Copy your info and paste it into the Word document. Save it - just in case.
• Format it like my example above.
• Copy your info.
• Open the comment box in the blog.
• Choose Edit - Paste from the Toolbar.
• Add your name and Publish the Comment.

Inflation

Answer the questions below for a country of your choice. Include the question numbers below in you response. Use my example as a guide.

1. What is the country?
   
2. What was the country's inflation rate in 2005?
3. What is the source of your information?
   
4. Why do you think this occured?

Example

1. Country: Ecuador
2. Inflation Rate: 2.6%
3. Source: http://www.isa-world.com/reports_forecasts/economic_forecast.pdf
4. Reason: The rate is normal for a healthy and controlled growing economy. However, during my research, I discover that during the mid-1990’s they had political and economic instability that resulted in an inflation rate that varied between 45% and -29.2%. Wow!

Mini Field Trip Ideas for Our Class

Weather permitting, it would be nice for us to go outside and learn something related to our various Business Topics. Your idea must fulfill the following requirements:

1. safe and interesting,
2. directly related to our course,
3. easily accomplished in 70 minutes,
4. free.

International Currency

What is (would be) your favorite country to travel to? What is their currency? How much of their money equals $1 (U.S. Dollar)?

Creating Money as a Game

Tell us what you know about the currency used in various Internet Games (MMORPG). Examples include Lineage 2, Guild Wars, Everquest, World of Warcarft, Runescape, FFXI, Ragnarok, Kings of Chaos, ...

Include details.