thursday7econlive

[thursday7econlive]

Reah Serna

ID: 84365348

Discussion Time: Thursday (7:00 - 7:50pm)

Rationality & Individual Demand (Budget Line)

I made a short pixel art video explaining how the concepts of rationality and Budget Line are used in my everyday life.

All art (including backgrounds) were made by me

Sounds & Background Music from Youtube:

Rina De Coro: Can You Really Call This A Hotel … (8-bit) (2A03 + 4N163) Undertale Cover

Legend of Zelda - Chest Opening & Getting Item

Creator Assets: 8-Bit Coin Sound Effect (Copyright Free)

JkeJr: Shop (VRC6) | Undertale 8-Bit Covers

Mario Paint Music: Creative Exercise

Undertale: Temmie Talking

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Pandemic and Pets

Name: Vivian Ngo

ID: 67347115

Since people were stuck home during the covid-19 pandemic with nothing much to do, many households had the common idea to adopt or buy a pet. The love and compassion that pets gave their owners filled a void caused by the pandemic. According to Forbes Advisor, 78% of pet owners acquired pets during the pandemic. There was a sudden increase in demand for pets, while the supply remained the same. Thus, prices for adopting or buying a dog or cat increased. Below is a graph to demonstrate the relationship between increasing demand and increasing price.

Being home during the pandemic gave pets and their owners ample time with one another. People got used to being home and pets got used to having their best friend around 24/7. However, when things started to get back to normal and people started to return to work, pets then had to adjust to being home alone. According to Forbes Advisor, pet owners during this time did a lot of guilt spending as two third of pet owners say that “they’ve spent more money on their pets in the last six months than they usually would in order to help the pets adjust to being alone more” (Tilford). This situation can also be modeled by a graph. Since there was an increase in demand for pet supplies like food, toys, and treats, and supply remained the same, there was an increase in prices for these goods. 

Source: https://www.forbes.com/advisor/pet-insurance/survey-78-pet-owners-acquired-pets-during-pandemic/

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Mask Market in China during the Pandemic

Junchi Chen, ID: 95495948

Jialing Zhou, ID:1093728

Discussion Time: Thursday 7 pm

This presentation introduces our life in China during the pandemic and econ concepts including supply and demand, elasticity, and government intervention are related to this market.

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Opportunity Costs and Meat-based Diets

Liz Cabrera

UCI ID: 67731815

Discussion: Thursday 7:00

During the pandemic I was able to make a change in my own lifestyle to become healthier and live in a more sustainable world. I decided to go Vegetarian because of the detrimental effects that the meat industry was having on the environment, and choosing to benefit from the alternative opportunity costs of not eating meat.

Every year, more and more land is seized for business projects to make money in the United States. A huge class of these business projects are those that are concerned with the meat and dairy industry. Land is used for farmland to tend to cattle and poultry for food. The effect of agricultural land is a large emission of greenhouse gasses and carbon into the atmosphere. This brings up the idea of opportunity cost of agribusiness. To define the term, opportunity cost is what you are losing as a potential gain from choosing one good over the alternative good. In this situation, land being used for agriculture has a high opportunity cost because they need large amounts of land to tend to the livestock. 

Although the consumption of animal based products has decreased over the decade, meat and poultry is a staple in most Americans' diets. A 2021 poll has shown that 89% of Americans include meat or poultry into their diets. The United States is a country that is well known for its massive meat production and consumption. That being said, the corporate monopolies that serve in the meat industry produce undesirable impacts when it comes to the environment. These include: extreme high and low temperatures, loss of forests and natural vegetation, extinction of species and many more ecological issues.

The huge carbon emissions released from agricultural business directly impact their own business as it intensifies the results of climate change. And over the years, Climate change has continuously worsened at an exponential rate. The drastic climates and temperature have resulted in a decrease in livestock and cattle due to grasses and plants decreasing in size which they can feed on. Consequently, a decrease in the quality of livestock results in an increase in the price. The demand for meat increases because supply of livestock decreases. But Because meat is such a huge part of many American diets, they are willing to pay higher prices.

These effects are allowing Americans to weigh out their options and consider the opportunity costs when choosing their dietary lifestyle. Reducing the area of land used for farming and tending to livestock and cattle would significantly reduce Carbon emissions which would result in positive effects. These would include: improving air quality, decreasing pulmonary diseases and cancers, and benefiting crop production. Although the crop industry is suffering from the effects of climate change as well, the prices of plant products, and plant-based in the markets are nowhere near the same as fresh meat and poultry in the markets. You would be saving money by eating a plant-based, or even just a non-meat diet. Along with monetary opportunity cost, a non-meat diet has a great chance of improving one's health. Substituting meat on a caloric level with foods such as fruits, vegetables, legumes, and starches can provide you with the same amount of calories plus it can introduce more and different vitamins and nutrients from various forms into your body.

[thursday7econlive]

Traveling

Name: Zijian Zhou (11253193)

Discussion Time: Thursday 7:00pm

In the short term, the new crown pandemic has done a lot of damage to the real economy. For example, at the beginning of the outbreak of the epidemic in 2020, the traditional service industry was almost completely shut down. The hotel and tourism industry as a whole has been in a state of closure, and the same is true for the transportation and catering industry. These industries have suffered huge losses and are in a passive operation stage.

Originally, winter break was just a time period where everyone goes out, but judging from the situation at the time, the pandemic basically prevented the tourism industry from opening during the winter break and spring break.

I want to mainly discuss the inconvenience caused by the pandemic to the travel industry.

The travel industry is a comprehensive industry. Its industrial elements include shopping, dining, housing, transportation, entertainment, sports, etc. The industrial chain includes resources such as upstream transportation, accommodation, and scenic spots. Almost all of the above categories involve people and socialization. 

The impact of the pandemic on the travel industry is self-evident. Statistics show that since the outbreak of the new crown epidemic, national tourism has dropped by 50%. The travel industry is affected by large consumption and challenges the economic balance so that the society can continue to operate. Under the continuous impact of the pandemic, people cannot go out for entertainment and consumption. Tertiary industries such as catering, accommodation, film media, and tourism have shown signs of decline in performance. Especially in the travel agency industry, which operates on offline consumption, without people's travel consumption, the company has to protect the company's funds and make layoffs. Small travel agencies that usually rely on loans to survive can only be withdrawn from the market. 

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By: Avery Whealton and Ashlyn Goulet

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How Covid has affected the housing market for college graduates

Adam Graham #55304428

Thu: 7:00 pm

As many of us, and myself, are graduating college this year there are many "adult" factors that will start to come into our lives. While as of now we are college students with some responsibilities, once we graduate, we will become responsible for ourselves the outmost potential. We are focused on our education and careers in the moment, but do not realize that after college we will be on our own completely. As we get our careers in line following graduation, one of the important factors is where we are going to live. As many college students will be in debt following graduation, questions rise to what, where, and how college students will be able to afford living on their own. While many of us may not be able to purchase as home following graduation, it is important to keep track of the housing market because purchasing a home can provide many economic benefits throughout our lives.

Graduating during this time following the pandemic is not so beneficial for college students in regard to the housing market. During the pandemic, the demand for housing decreased. I think the demand for the housing market decreased due to the fact people were unemployed and fearful for the future resulting in lack of spending. With the decrease in demand the prices for houses decreased. However, post pandemic, the demand for the housing market has actually increased, and prices have raised.

While it is not super evident in this graph from 2021 to 2022 housing prices increased 16%. I think the increase in demand following the pandemic occurred because people were not spending during the pandemic and now have some money to spend. This demand curve is represented in this graph.

A better fit for college students, and for people in general, would be to see the demand go down, resulting in reduction of price (represented in the graph below).



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Thursday 7PM Discussion Students: Haley Marts ID# 47645280

Hugo Seto ID# 25907489

Franz Michael Sanchez ID# 64868743

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Everyday Decisions with Opportunity Cost and Trade-offs

Name: Ashley Santos

ID: 54321194

Discussion time: Thursday, 7:00 pm - 7:50 pm

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Used-Car Market

Student name & ID

Tony Yang 13872738

Jingcheng Shi 24417898

Discussion time: Thursday 7pm

Price changes in the used-car market

As a college student, responsible financial management is paramount, particularly for significant expenses such as purchasing a car. Consequently, a basic understanding of economics is an essential tool to make informed decisions and navigate market fluctuations. In pursuit of this objective, my friend and I embarked on an investigation into the used car industry, leveraging the fundamental economic principles imparted in our Econ 20A course. Among these principles, the law of demand stands out as a cornerstone of economics. This fundamental tenet asserts that the quantity of a good or service demanded by consumers decreases as its price increases, ceteris paribus, and conversely, the quantity demanded increases as the price decreases.

Applied to the used car market, the law of demand implies that as used car prices increase, the quantity demanded decreases, and conversely, a decrease in price leads to an increase in quantity demanded, as represented by a downward-sloping demand curve. However, other factors, such as the availability of credit, consumer preferences, and technological advancements, also play a crucial role in shaping demand.

The COVID-19 pandemic has led to significant changes in consumer behavior, which, in turn, has had a profound impact on the used car market. With many people working from home, the demand for cars has declined, resulting in a surplus of used cars on the market. Nevertheless, at the same time, the supply of new cars has dwindled due to factory closures and supply chain disruptions, prompting an increase in demand for used cars as a substitute. 

publish.manheim.com

Based on the image, we analyzed that:

In early 2022, inflation in the United States was attributed to the thriving used-car market, which had become a reliable predictor of inflation trends due to the escalating prices of used cars. However, the trend changed towards the end of the year due to several factors, including increased interest rates by the Federal Reserve, a surge in new car supplies, and fears of an impending recession. As a result, wholesale used-car prices plummeted to their lowest levels in over a year.

According to Jonathan Smoke, the chief economist at Cox Automotive, the drop in wholesale used-car prices was followed by a surge in new car retail sales as new vehicle inventories began to build up. However, Cox Automotive, the largest online and offline (O2O) trading platform for automobiles in the US, has recently reported a significant upturn in used-car auction prices. The Manheim Used Car Value Index, which tracks used car auction prices, surged by 4.3% from January to February 2023, representing the largest monthly increase since October 2021. This is also the most significant surge for the month of February since the 4.4% increase recorded in February 2009, 14 years ago.

Goldman Sachs has identified two significant factors responsible for the rebound in used-car auction prices. The first is a temporary supply restriction of automotive chips, and the second is a reduction in long-term rental market sales. The scarcity of automotive chips has had a domino effect on the automotive industry, resulting in a decrease in the supply of new cars and an increase in demand for used cars, ultimately driving up their prices. Similarly, the reduction in long-term rental market sales has created a shortage of used cars, leading to a surge in demand, which has also driven up prices.

In conclusion, understanding the principles of economics, especially the law of demand, is essential in making informed purchasing decisions in the used car market. By keeping abreast of market changes and considering the various factors that influence demand, college students can make prudent choices, optimize their budget, and acquire reliable vehicles at reasonable prices.

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Name: Valentina Garcia (ID: 81448996)

Discussion: Thursday 7 pm

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Aurash Azad: 81969644

Tayeh Ahadi: 46283688

How does inflation affect grocery prices?

Eggs

In the past year, many groceries have seen an increase in prices due to several different factors, such as supply shortages, labor shortages, and natural disasters. In the latter category is eggs, which has had a 138% increase in price in the past year. Before, the average for a dozen Grade A eggs was approximately $1.79, but as of January of this year, the average price has gone up to $4.25. What could be the cause? For the most part, the rising price of eggs can be attributed to the avian bird flu that has swept the nation in the recent months, affecting close to 60 million birds, and as a result, their eggs. The bird flu has not only decreased the supply of eggs to the country, but also increased their overall prices. However, the high price of eggs doesn't detain all Americans, as they are considered a food staple to many, since they are used in a wide range of dishes, such as breakfast foods and baked dishes. The low supply of eggs coupled with their stable consumption means that in many grocery stores across America, eggs are completely sold out. Another source of high prices could be due to price gouging in major egg firms, such as Cal-Maine Foods, which has reported an increase of 600% in quarterly gross profit, though they haven’t had any cases of avian bird flu on their farms. Thus, although the egg industry has seen a decrease in supply due to the avian bird flu, a lot of the price increase is associated with large firms using the flu as an excuse to gouge prices in order to increase their profits, not thinking of the effects they may have on their consumers. In my personal experience, I use eggs frequently in my breakfast as they’re a quick and easy source of nutrition, and they’re versatile in a way that many other foods aren’t. Also, as a college student with very little income, eggs have served as a staple in my fridge since the beginning of university. However, in recent months, I have had to be more frugal in how I spend my grocery budget, and that means less eggs and healthy food options, and more cheap, low-quality food that’ll last me longer. However, even when I plan to buy eggs, they are not always available in my local grocery stores. Just recently, my trip to Trader Joe’s revealed empty rows where eggs used to be, as consumers continue to buy them even as their supply decreases. Eggs, though seemingly inconsequential in day-to-day life, play a significant role in many foods, and their price increase coupled with their supply shortage has resulted in distressing grocery trips all across the country.

Butter

Grocery prices have been on the rise within the past few years. The COVID-19 pandemic that began March 2020 is only one reason to blame the skyrocketing prices, and the shortage of supply in the market. A shortage is when the quantity demanded is disproportionate and larger than the supply available at the market price. After the breakout of the pandemic, many of us would walk into grocery stores to see nothing left on the shelves. There are many different reasons for the rise of prices, and a few important ones that can be seen include shortages within labor as well as supply. According to the Time magazine, the price for one stick of butter has increased more than 31% just within the past year. The average price of butter was set at $3.47, and is now found to be $4.81 on average across most cities in the United States. Besides the COVID-19 pandemic, dairy farmers are blaming the extreme heat, along with the small cow herds, which includes the results of financial combats as the primary reason for the increase in the price for butter. The shortage of butter has caused major concerns in the US, not only for consumers, but for factories and productions as well. One of the main reasons for this is set due to milk production setbacks that occurred within the economy. The demand for butter is increasing, even as the rates for dairy production is lowering, which is causing a lower availability in the supply market. Besides the direct effect it has on the market industry, it affects the lives of individuals as well. For example, butter is an essential ingredient to both chefs as well as bakers, to almost everyone using it in the global economy. Most dishes around the world incorporate butter into their ingredients and are used to help melt or fry, complement, or enhance flavor. The cost of producing dairy products has widely increased and therefore has caused the supply to decrease. How has this affected my personal life? Well, here at UC Irvine it has been difficult living on campus, on a college budget and having to purchase groceries to cook meals. It has become more difficult due to the recent rise in grocery prices, but more specifically butter. Using butter is a crucial ingredient to many different dishes, including eggs, which have also seen inflation within the past few years. With the rise in prices and the decrease in supply available, it has been hard to get access to many basic grocery needs, including butter. Not only do I use butter to cook, but to bake as well. Whether it has been a cookie, cake, or any other dessert, one of the principle ingredients is butter and without it, it makes it very hard to bake or cook. Overall, the rise in grocery prices has caused a worldwide crisis in many households and has put no option but a budget to be imposed in many families that had never thought about having one before. However, with the COVID-19 pandemic emergency slowly coming to an end, along with the combination of farmers beginning to recover from the pandemic and fertilizer costs slowly beginning to decrease, we can anticipate that grocery prices, including the price of butter will begin to decrease once again. 

https://time.com/6250895/grocery-prices-rising-inflation 

https://time.com/6255258/inflation-grocery-prices-rise/

https://www.cbsnews.com/news/inflation-food-grocery-prices-financial-pain/

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COVID-19 pandemic

Student Name & ID: Jingwen Hao (71705564) Discussion Time: Thursday 7pm

With the COVID-19 pandemic I faced a myriad of challenges and this affected my school life. First and foremost, the COVID-19 impact was beset with disruptions in terms of cash flow and incomes. I had to adopt a savings culture. Say for instance, I had a part time job during school off days like weekends and I lost the same and had to reduce my expenses by 35%. This affected me mentally and economically. Due to poor demand of goods and services we had to be laid off and I also had to cut off some expenditure from my end. A reduction in supply and demand of products led to reduced business and the closure of schools led to changes in day to day life. Additionally, I was distressed after the closedowns due to the need to isolate and reduced economic activity. This was prevalent in the society that we now reside in and this distress has been witnessed everywhere.

Consumption spending has also decreased commensurate based on how the economy was performing and I had to really cut what I was spending on a daily service. Changes in spending were reflected in holidays, restaurants and in the transportation for students and I also changed my spending on it especially on restaurants etc. Income and wealth losses for most of the students were affected by over 50% and I was also affected by the same. Similar surveys were done elsewhere and the results were strikingly similar to what I experienced during the same period. Reduced demand due to lockdowns and limitations in movement led to decreased incomes. A chart showing the effects of the pandemic on students where I am also included.

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Zhekai Zhang

ID: 001098633

Discussion time: Thu 7:00-7:50pm

One phenomenon that can be creatively explained using knowledge learned from the economy is the concept of opportunity cost. Opportunity cost refers to the cost of forgoing the next best alternative when making a decision.

To demonstrate this concept, taking me as an example. I was in a dilemma that I did not know whether it was worth buying a new iphone 14 or saving my money for a future purchase. I created an illustrated flowchart that showed the decision-making process and the opportunity cost of each choice.

In the flowchart, I showed two branches, one for buying the new phone and one for saving the money. On the buying branch, I listed the benefits of having a new phone, such as a better camera, faster processing speed, and new features. However, I also showed the opportunity cost of this choice, such as not having the money available for a future purchase, or having to work extra hours to make up for the expense.

On the saving branch, I listed the benefits of saving the money, such as having more money available for future purchases or emergencies. However, I also showed the opportunity cost of this choice, such as not being able to enjoy the benefits of having a new phone right away.

As a result, I found that buying a new phone was an absolute advantage and also could be considered as a rational approach. This demonstration can help people understand the concept of opportunity cost and how it applies to daily decision-making. It can encourage individuals to consider the potential trade-offs of each choice they make and make more informed decisions about how to allocate their resources.

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Jonah Gorham

ID: 15418178

Discussion Day/Time: Thu. 7-7:50 pm