Sep 25 2007
IB Y1 students: Are you cutting back on restaurant meals?
Published by Michelle Close at 3:38 pm under IB Economics
Consumers cutting back on restaurants: survey Reuters, September 25, 2007
For all my Year 1 IB Economics students out there, here is an example of an short and sweet article that brings to life many of the economic principles that we have been studying in Unit II. Since all IB Year 1 students will be writing their first Internal Assessment during the second week of October (when I am away for China Alive), I wanted to post something just for you to help you prepare.
So, why is this article appropriate for an IA Assessment? First, it is was written in the last 6 months. Second, it is not found in the Economist but it is written by a writer from who has not done a complete economic analysis of the events. That means that there is still room for you to do it. Third, even though some economic ideas are mentioned in the article, the price elasticity of demand as a factor in why people are “cutting back on restaurants” is never mentioned. So, the article is written in such away that there is room for your own independent Demand/Supply Analysis including a whole analysis on the Price Elasticity of Demand for Restaurant Meals.
IB Students, you will need an article in hand on October 8th. Start looking online, New York Times, Reuters, Yahoo, Times, Newsweek, your home country’s newspaper (for me that would be the Boston Globe. So, check out the front page news. Do not go straight to the business section. Consult your IA handbooks and bring them to class.
Ready, set…. search…
About the author: Michelle Close teaches AP Economics and IB Economics the Shanghai American School where she is also the CAS coordinator for the IB program. Michelle has taught in a wide variety of school settings for the last twenty years and truly values teaching, living and traveling abroad.
Michelle has been living in Shanghai with her husband Kevin and two children, Maya and Cooper since 2006 and she previously taught at the Columbus School in Medellin, Colombia. She calls Boston and The Bay Area her home away from home. Read more posts by this authorRelated posts:
- Welcome to my 2008-2009 Economics students
- IB Economics students’ World Bank development project proposals: Students request funds to improve human welfare in the world’s poorest countries
- “What’s sinking the dollar?” – for IB students
- New resources for Econ students and teachers coming soon!
- Students debate the proposed bailout of the US automobile industry
Now I'm just confused. I just finished reading the ban on the cupcakes, and now I read that people are eating out less, except at fast food restaurants, such as McDonalds, which is up 8.1%. This totally contradicts the cupcake thing. Food quality and menu offerings are the main factors that affect people's decisions, but they go to fast food restaurants with limited choices, and really unheathy choices. They are also worried about declining home values, but sitting at a restaurant and eating with family probably promotes family values. They want convinece, but staying at home would mean cooking…..or ordering in.
I'm guessing that people really are concerned about price, thus do not go out to eat where they have to pay more. It is cheaper (synonymous for convenience?) to stay in. Going out also requires gas for transportation, thus, not going reduces price of gas. They believe more in domestic values, don't know why, but it seems to worry them, thus keeping everyone in the domestic area, otherwise known as the house. But why do they order from Fast food, when it seems that the United States is currently at a rage for happy, healthy foods. Makes no sense to me, but maybe I got it all wrong.
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1,000 people really speak for the whole U.S, but it does reflect the mind set that people have. This would be a shift in the quantity demand for sit down restaurants, the article says that it is not price but i believe it is. With higher energy costs (and others), people have to spend more paying for those things and leaving them with less money to spend. And so, the sit down restaurant prices looks more expensive than the other cheaper fast food restaurants.
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