Online Shopping Lifts Aramex Profits by 4% and Rent Cap...

Article 1 The article chosen is ‘Online shopping lifts Aramex Profits by 4%’ extracted from The National (Barnard, 2014). Three major microeconomic concepts would be used to analyze the article, which are demand, the law of demand for complements and elasticity’s. The article talks about the rise in the profit of Aramex due to increase in online shopping. This article is a clear example of demand of complementary goods. The law of demand for complementary goods states that if the demand for one complement increases it leads to an increase in the demand of the other. Online retailing is a new introduction in the world of shopping. It has been well received all over the world, but in Middle East the reception has been quite slow in the†¦show more content†¦With the growth of online retailing, the demand for Aramex services has also increased significantly. Here we can see the economic concept of demand for complements. Complements are basically goods which are jointly used to satisfy wants. They have negative cross elasticity which means that a change in demand for one good causes a similar change in demand of the complement good. In this article it can be seen that online retailing and the services provided by Aramex are complements. The increase in demand for online retailing has led to an increased demand for Aramex services thus leading to increased profit growth reported by Aramex. The graphs above also depicts the same showing a rightward shift in the demand curve of both online retailing and Aramex services. The growth in online retailing has not only led to growth in Aramex, it has also led to overall growth in the economy. This is because it prompts people to buy more goods as online retailing is an easy and convenient way of shopping. The IMF predicts GDP in the UAE to grow by 4.4 per cent this year, while in Qatar growth is expected to reach 5.9 per cent. Article 2 The article chosen to be analyzed is ‘Rent cap removal hits Abu Dhabi’ extracted from The National (Nair, 2014).Three main microeconomic concepts would be applied to analyze the article; these are demand and supply, elasticity’s and price ceilings. The article chosen talks