Smoothies and cola

1)Because smoothies contains balance vegetables and makes a balance diet and also it's healthier then other soft drinks.

2)Demand for smoothies would be more than cola because firms would make advertisement

which telling that smoothies are healthy and better for people to by smoothies rather killing

them selfs by drinking cola.

3)One result was that sales of cola and other soft drinks were affected,with people switching

to smoothies.

Surprise fall in youth unemployment dismissed as the ‘lull before the storm.

The rise of unemployment in UK get slowdown and in the three months to August as the number of young people out of work fell, official figures showed yesterday. Unemployment rise 88,000 to 2.47 million, but now situation is that the number of young people out of work fell to 946,000 — 1,000 fewer than the record high set in the three months to July. The number of people signing up for jobless benefits climbed at the slowest way in 16 months in September, rising by 20,800 to 1.62 million. Among 18 to 24-year-old, the figure increased by nearly 8,000 to 490,000.

However the statistics little bit surprised economists who who was thinking that unemployment will rise above 2.5 million and youth joblessness to climb to 1 million as tens of thousands of school and college leavers struggled to find jobs.

Insurer Zurich to cut workforce

Zurich is consulting with unions on plans to cut staff numbers by about 10% by the end of the year. The business employs 5,400 staff in 20 locations all around the country but it is unclear which offices will be affected. The news comes on the same day as rival Aviva, owner of Norwich Insurance, said it would cut 1,800 jobs by 2010. 'Acting swiftly' Zurich said the "decisive" restructuring would improve customer focus and help to achieve more "sustainable" growth in profits. And it said that between 700 and 900 posts were likely to be lost. But the business, which provides general cover for companies and individuals, operates from 20 sites, the largest being in Birmingham and Whiteley, Hampshire. "However, it is clear that if we want to remain competitive, we must act swiftly to increase efficiencies so that we can achieve our growth plans and safeguard the future of our business in the UK."

Stamp prices may rise next year

Stamp prices may rise again in April next year. Regulator Postcomm predicted prices for first-class stamps would rise by 3 p. to 42p. per stamp and prices for second-class stamps would rise by 2p. to 32p. per stamp. He also added that Royal Mail needed extra funding to compensate a decline in mail volumes. Regulator sad that even after rising in prices for stamps Royal Mail would still lose their money.
Stamp prices were last increased in April this year. Royal Mail has another problem. There are a lot of strikes (workers don’t want to work). This is caused by reduction in worker’s places and wages. The result of a ballot by the Communication Workers Union (CWU) calling for a nationwide strike by postal workers will be announced on either 8 or 9 October. While the CWU is demanding that Royal Mail signs an agreement with it to determine the exact scope of job cuts, Royal Mail counters that an earlier deal with the union in 2007 had already sanctioned all necessary future redundancies. The most recent figures show that the Royal Mail's letters and packages unit made an annual profit of £58m in 2008 from a turnover of £6.7bn. Royal Mail counters that this is a very small profit considering the size of the turnover, and staff cuts are required to prevent it returning to losses in the future

Answers:
a) The price elasticity of demand shows how demand responses to changes in price.
b) I’m not quite sure about changes in quantity demanded, because there is no information about demand for stamps in the chapter. I guess, that demand for stamps would not change a lot with rising in price for stamps, because there are not a lot of substitutes of using Royall Mail ( you have to buy stamps for using Royall Mail). So, I guess that the PED would be a number between 0 and 1, because % changes in price for first-class stamps is near 0,07 and % changes in price for second-class stamps is near 0,06. As I sad before changes in quantity demanded of first-class and second-class stamps would equal not a lot. That’s why PED would be between 0 and 1.
c) The number PED between 0 and 1 says us that demand for stamps is inelastic.

d) As I sad, there are not a lot of substitutes of using Royall Mail, that's why demand is inelastic. Also the amount, that person can spend on the stamps. The prices of stamps are not big so customers can buy it.

e) Because the demand for stamps is inelastic, Royall Mail wouldn't have a problems with consumption if the prices will go up. In my opinion, Royall Mail has problems with fundings because of another case (not connected with consumption).It can be a lot of spending or irrational spending.

f) 'Ceteris paribus' means all other things being equal or held constant.

Drinking

A)The amount of alcohol consumed per person has risen by 10% since 2000 - despite drink sales remaining steady. But researchers Mintel said wines and lagers were becoming stronger unfortunately people didn't see the changes. It shows that at list third men and fifth women drink more alcohol a day then it is recommended Because the limit for alcohol three or four units a day.Consumers have limited information to help them make healthy choices about their alcohol consumption.

Don Shenker, of Alcohol Concern Mintel carried out its own surveys as well as using data from a range of sources including the NHS and sales information from shops, bars and pubs to compile its report. Binge drinking among the young is often blamed for growing alcohol consumption, but the Mintel research showed those drinking at home were the group which saw the greatest rise. Moreover, in a sign that binge drinking may be becoming less socially acceptable, 22% fewer 18-24-year-olds agreed with the statement, "the point of drinking is to get drunk" than did five years ago, the report added.

B)http://news.bbc.co.uk/1/hi/health/8223294.stm

1) information failure - is a lack of information resulting in consumers and producers making decisions that do not maximize welfare. Just in simple examples (in the article) we can see that in some cases customers can consume more in situation where information failure exists.

2)

3) Yes, "stealth" drinking is an example of information failure. Because people really don't know about volume of alcohol and also about harmful of drinking. "Consumers have limited information to help them make healthy choices about their alcohol consumption" - sad Don Shenker, of Alcohol Concern.

4) In theory, the government should provide information to show all harmful of alcohol to people and the, probably, people will consume less (average consumption will decrease).

5) people don't know about volume of alcohol and people are not aware of harmful of alcohol.

The economy of China

The economy of China are good developed. Nowadays China is world wide exports China provides almost every thing in world starting from silk and clothes and end with cars trains, all countries buy goods from china i think because it is very cheap.I think that china is very good developed because chinese people is all around the world and they study worldwide for example they study in UK and they get good educated and their future generation will do everything to make the chinese economy stay the same or they will make the economy grow.