War in the Middle East has severely reduced tanker traffic through the Strait of Hormuz, a route that carries about one-fifth of the world’s oil, raising fears that Iran could close the vital oil shipping route. —bbc.com
Category: MIT2
How Markets Work (Demand and Supply, Applications, Extensions)
Keywords: Equilibrium price, Equilibrium quantity, Elasticity, Efficiency
Parkin 14e Chapters 3, 4, 5
Bade-Parkin 9e Chapters 4, 5, 6
Parkin-Bade Canada 11e Chapters 3, 4, 5
Parkin-Bade Australia 2e Chapters 4, 5, 6
Parkin-Powell-Matthews 11e Chapters 3, 4, 5
The Credit Card Loan Market
The U.S. President has proposed an annual interest rate of no more than 10 percent on credit card loans. A senior executive at JPMorgan Chase considers the proposal a vain attempt to help low-income borrowers. The average market interest rate on credit card loans is 22%.— economist.com The Unregulated Credit Card Loan Market A 10% … Continue reading The Credit Card Loan Market
Hamburger Helper Sales Rise
During the 2008 financial crisis and the Covid pandemic in 2020, sales of Hamburger Helper increased. Even today, with the price for food consumed at home 21 percent higher than it was four years ago, sales are up 14.5 percent in the year through August.—nytimes.com
Higher Steak and Beef Burger Prices in the U.S. Are Here to Stay
The rising cost of raising cattle is leading ranchers to sell heifers—the higher-fertility cattle needed for herd rebuilding—lowering the herd to its smallest size in 75 years. With beef prices at record highs, diners are opting away from steaks and burgers.—npr.org
AI Data Centers in the U.S. Have Squeezed Output in Other Markets
Big tech firms in the U.S. are building numerous data centers, betting on massive AI-driven economic growth. However, the increased number of data centers has put extra strain on the electricity grid, leading to an average 7% rise in electricity bills in 2025, which has constrained output in other markets.—economist.com
U.S. Orange Juice Shipments Plummet as Canadians Find Florida Orange Juice Hard to Swallow
Supply constraints are raising orange juice prices in Canada, lowering demand. U.S. tariffs prompted boycotts of U.S. goods like Tropicana whose price has risen to $13.99 in Canada, while Canadian brands PC and Irresistible sell for $6.50–$7.69.—cbc.ca
Extreme Weather Drives Food Price Surges Across the Globe
A study led by the Barcelona Supercomputing Center links dozens of climate extremes to sharp food price rises. The study noted that in Japan, the price of rice rose 48 percent in September after an August heatwave across the region.—ft.com
Matcha is Having a Moment in Japan
With influencers widely promoting matcha tea and record levels of tourism in Japan, the price of matcha powder is rising. Many farmers lack the resources to upgrade to specialized machines needed for matcha production. In the future, aging matcha farmers note that they have few successors to take over.—cbc.ca
Canada’s Spring Wheat Market
China’s 100% tariff on Canada’s canola meal and oil have supercharged Canadian farmers’ shift to spring wheat. Millers and bakers are benefitting from the production decision of Canadian farmers.—reuters.com
A Dire Donor Shortage
India faces rising cases of diseases that damage vital organs. Annually, it needs 175,000 kidney, 50,000 liver, heart, and lung, and 2,500 pancreas transplants. Yet, donor organ supply is critically low. Organs are allocated on the basis of a waiting list with medical urgency, blood type compatibility, and organ size influencing the waiting time.–India Today … Continue reading A Dire Donor Shortage