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Lipsey & Chrystal: Economics 11e

Chapter 06

The following three stories can also be linked with the "biofuels" stories which are relevant to Chapter 10 and they also have links to the "principle of substitution" which is discussed in Chapter 6 and relates to how high prices of an input lead to greater demand for substitute inputs and thus have spillovers into other markets.  These reports have additional elements which include: a drought in Australia leading to higher world wheat prices, and bad weather in the UK increasing demand for cakes as comfort food.  Higher wheat prices have knock on effects in products (other than biofuels) that use wheat and other grains as inputs.
Financial Times, Tuesday, July 10, 2007
www.ft.com/cms/s/d70a1570-2e7d-11dc-821c-0000779fd2ac.html
The Times, Tuesday, July 10, 2007
business.timesonline.co.uk/tol/business/industry_sectors/consumer_goods/article2051166.ece
CNN Money, Tuesday, July 31, 2007-08-22
money.cnn.com/2007/07/31/news/economy/wheat_prices/index.htm?postversion=2007073114

The following story gives a broader international context to the biofuels stories.
Financial Times, Wednesday, August15, 2007
www.ft.com/cms/s/0/9d17df58-4ac7-11dc-95b5-0000779fd2ac.html

A new twist on the biofuels story comes with an article about a new plant which may be planted widely to provide renewable source of biodiesel.
The Times, Saturday, July 28, 2007
www.timesonline.co.uk/tol/news/world/article2155351.ece 

Stories in Chapter 3 about fuel prices and biofuels in particular also links to the analysis of costs of production covered in Chapter 6.  They also link to the principle of substitution discussed in this chapter as high prices of one energy source cause consumers to switch to other sources.
BBC, Wednesday, July 30, 2008
http://news.bbc.co.uk/1/hi/business/7528595.stm
BBC, Monday, July 28, 2008
http://news.bbc.co.uk/1/hi/business/7526048.stm
BBC, Wednesday, June 18, 2008
http://news.bbc.co.uk/1/hi/business/7461635.stm

The following links to the case study on page 132 and explains the importance of economies of scale for business.
The Times 100, Edition 13, 2008
www.thetimes100.co.uk/theory/theory--methods-growth-economies-scale--212.php

The following links to the analysis of new materials on page 133 and suggests that the evolution of new technologies in this area is still continuing:
Physorg.com, July 21, 2005
www.physorg.com/news5341.html