Hershey expects to offset the pain of record-high cocoa prices as well as higher sugar costs by raising its prices of chocolate and candy.—CBC News, April 2, 2024. SOME DATA The price of cocoa has more than doubled over the past two years and has risen sharply since October 2023. Figure 1 shows the data. … Continue reading Will the Soaring Price of Cocoa Turn Chocolate into a Luxury Item?
Category: Eye On–Micro
Income Inequality in the Global Economy
How unequal are incomes across countries? The answer is very unequal. In 2024, the average income in the 10 highest income countries is $88,000 a year, which is 73 times $1,200 a year, the average in the 10 lowest income countries. Are incomes across countries becoming more unequal? The answer is no: Incomes across the … Continue reading Income Inequality in the Global Economy
New York City’s $15 Congestion Tax Wins Initial Approval
New York City’s Metropolitan Transportation Authority (MTA) will make motorists driving into Manhattan’s central business district pay a congestion tax. Passenger cars will pay $15 and trucks will pay $24 to $36 and the tax will bring in $1 billion annually. —Bloomberg, December 7, 2023. Some Data The MTA’s “Congestion Pricing will unlock a better … Continue reading New York City’s $15 Congestion Tax Wins Initial Approval
Proposed Halt to Planned Increase in Beer Tax
The Canadian government will not raise the excise tax rate on beer to 4.7 percent in April 2024 as planned, but it will maintain the rate at 2 percent for next two years. This tax change will benefit brewers and cost the government $153 million over two years.—Bloomberg, March 10, 2024. What is an excise … Continue reading Proposed Halt to Planned Increase in Beer Tax
Apple Antitrust Suit Mirrors Strategy that Beat Microsoft, but Tech Industry has Changed
The U.S. Department of Justice (with 15 state governments) says Apple has monopolized the smartphone market with restrictions on app developers that force consumers to pay higher prices. —Mike Scarcella, Reuters, March 22, 2024. How concentrated is the smartphone market? The answer depends on which market, the global market or the U.S. domestic market. Figure … Continue reading Apple Antitrust Suit Mirrors Strategy that Beat Microsoft, but Tech Industry has Changed
Apple Fined $2 Billion in One of Europe’s Largest Antitrust Actions
The European Union (E.U.) fined Apple €1.84 billion (about $2 billion), saying it set unfair rules for developers of music-streaming apps. The E.U. probe into Apple stemmed from a complaint filed by Spotify, which competes with Apple Music.—Wall Street Journal, March 4, 2024 Data on the music streaming market How big is the music-streaming market … Continue reading Apple Fined $2 Billion in One of Europe’s Largest Antitrust Actions
Investment in Dairy, Egg, and Poultry Processing Projects
The government of Canada will invest $89 million in 49 processing projects that will enable dairy, egg, and poultry producers to boost capacity and be more productive by installing automated equipment and technology. — Glacier FarmMedia, February 6, 2024 How will installing automated equipment and technology change a dairy’s total product curve? Total product (TP) … Continue reading Investment in Dairy, Egg, and Poultry Processing Projects
De Beers Makes Sharp Cuts to Diamond Prices After Sales Grind to Near Halt
During the pandemic, the demand for diamond jewellery boomed, but demand quickly faded as social restriction eased. Many diamond jewellery sellers were left with excess stock that they had bought at high prices. In January 2024, De Beers cut prices by about 10 per cent across the board and up to 25 percent for larger … Continue reading De Beers Makes Sharp Cuts to Diamond Prices After Sales Grind to Near Halt
Federal Judge Blocks JetBlue’s $3.8 Billion Acquisition of Spirit Airlines
In January 2024 , a federal judge blocked JetBlue Airways $3.8 billion deal to buy Spirit Airlines, rejecting a merger that he said would hamper competition and lead to higher fares. The ruling marks a victory for the U.S. Department of Justice, which stopped the JetBlue and Spirit deal from going ahead. The Data: Figure … Continue reading Federal Judge Blocks JetBlue’s $3.8 Billion Acquisition of Spirit Airlines
Cheerios Maker General Mills Cuts Sales As Price Hikes Hammer Demand
Price hikes, undertaken to offset steep input costs, primarily labor costs, have pushed consumers to buy smaller pack sizes for pantry staples and pet food, as well as opt for cheaper private-label alternatives.—Reuters, December 20, 2023 In this post, we look at the price hike that consumers face and use the model of demand and … Continue reading Cheerios Maker General Mills Cuts Sales As Price Hikes Hammer Demand