Chapter 2
"Price elasticity of gas demand" env-econ.com

This article is about the gas prices and will people stop consuming gas or still buy gas even though the prices are rising. It says the prices right now will not affect consumers buying gas at the moment because gasoline is needed. However if the gas prices go up even more from now and stay that way for a long time it will stop some consumers from buying gas. Gas prices are rising every year and people are still buying gas. Researchers say time will change the consumption of gasoline if the price stays high for serveral years. People may choose to use some subsitutes or hybrid cars to replace cars or they might decide to move or shorten how far they live from their job.

I think that they need to find subsitutes for gasoline sooner. Hybrid cars are a good idea but not everyone will buy them because of their cost. Like people would just rather spend money on gasoline as of right now because its cheaper than buying a hybrid car. Gasoline is also harmful to the environment creating pollution and global warming. There are many other ways to stop the consumption of gasoline such as car pooling, public transit or even just walking. Hopefully subsitutes will be invented and help solve this problem of expensive gasoline.

This relates to chapter two because it shows that gasoline is inelastic for now. However, time can make gas elastic because of new subsitutes or if the price just gets too high.

Chapter One Media Article

"What's behind Japan's Big Surge?" November 6, 2006 businessweek.com

This article is about Japan whos ranked second in the world in biggest economy. As the economy is growing in Japan, it is planning on the biggest economic expansion since the second world war. The average pay per worker in Japan went up by 8,400 yen ($71).This is not much compared to what they lost in the 1990s but it is still a good increase. Their bank is planning for a increase of 2.4% in GDP this year and another 2.1% next year. Whats the reason behind Japan's success? Most of Japan's economy is from the many exports they do. However their major trading partner is the U.S. One fifth of Japan's exports are heading to the U.S. so they depend on them. Nearly $700 billion worth of cars from Japan go to the US. Because Japan's major exports are to the U.S., anything that will make the economy of the U.S. go down will also affect Japan too.

I think it's great that Japan's economy is doing so well, but I also think that they should not be depending so much in the U.S. If the american's economy goes down the Japanese's economy will greatly go down too. In my opinion, I think Japan should find more trading partners. I don't really mean that they should stop trading with the U.S. but just not depend on them too much.Sure, the U.S. will give more money, but I think they should trade more with some other countries too just in case.

This relates to chapter one because it relates to resouces and goods being exported. Instead of Alberta's oil or the Atlantic fishery, this is about Japanese exports of cars and other products to other countries, mainly the U.S.