Substitution effect at work

//Substitution effect at work

Substitution effect at work

Cranes and containers are seen at the Ports of Los Angeles and Long Beach, California in this aerial image

Reuters: Asian supply lines hit by West Coast ports dispute

Article published: Feb 16, 2015 – out of date: no longer suitable for your IB Economics commentary

IB Economics syllabus: Microeconomics

As the dispute of workers at U.S. West coast ports cause huge delays for Asian suppliers, many large firms start shipping by air fright. Supply, demand and the substitution effect in action.

Source of image: Bob Riha Jr, Reuters

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By | 2017-08-23T11:01:21+00:00 February 17th, 2015|Micro|Comments Off on Substitution effect at work

About the Author:

My name is Daniel Szekely and I work as an IB Economics tutor, examiner and teacher. Having earned an MA degree in Economics at the University of Aberdeen, I became a financial analyst at Morgan Stanley, one of the largest investment banks of the world. Yet, despite the promising career prospects of the banking industry, I decided to make a larger social impact by becoming a teacher. Currently, I teach IB Economics at SEK Budapest International School and have been an examiner for over 5 years. I started EconDaddy as a simple blog to share great articles with my students and others taking IB Economics around the world to use for their commentaries. Being a practicing IB Economics tutor, I have first hand insight into the most common mistakes of students, so the EconDaddy blog now also provides exam and commentary writing tips.

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