Discuss – Group 7:

Why the prices of some products, such as computers or HDTVs, tend to fall over time, while
the prices of other products, such as cars or auto insurance, tend to rise? Or why the price of
a house can fluctuate tens of thousands of dollars from year to year.

The prices of some products, such as computers or HDTVs, tend to fall over time, while
others do not. Some factors due to the constant development and updating of technology, the
prices of these products decrease over time. Also, when the demand for a product increases,
the manufacturing cost is often reduced, which can lead to a decrease in price. Additionally,
another critical factor is that the existing and emerging competition in the market can also
impact the pricing of HDTVs; always all those companies are competing to attract more clients.
Finally, consumer preferences changes can also affect the prices fall.

On the other hand, the rising of auto insurance or car prices tends to increase over time.
The accident rate is also growing with the increasing usage of autos in today's society. Then the
number of auto insurance claims will increase, so the cost and risk of insurance companies will
increase. These factors force the insurance company to raise the insurance premium. In
addition, the manufacturing of cars is more complex than HDTVs or computers; this is an
essential factor that results in the rise of the cars' price; finally, new regulations, such as car
improvements to reduce car emissions and inflation, can affect it too.

Something different happens with the price of houses worldwide; this market tends to
fluctuate, and the principal reason is inflation. Also, the demand and house location influence
the market price; for example, young people prefer to buy a house near the school (better-
ranked school), which sometimes leads to many people competing for one place. Furthermore,
natural events can influence the price, decreasing them after a disaster; even the area's
reputation can increase or decrease prices. Then this will drive up the cost of homes.
The policy: just like last year, Calgary issued a policy that international students couldn't buy
houses after January 2023, which made some people not in a hurry to buy homes but rush to
buy in December. This also causes the price of houses to rise in the market. In addition, interest
rates can impact the price.

Why does a poor orange harvest in Florida cause the price of apple juice made in Ontario to
rise?
Because of a poor harvest in Florida can lead to a decrease in the availability of orange
juice, thus creating a potential modification in consumer preference toward apple juice as a
replacement. This change in demand could increase the price of apple juice in Ontario, which
may cause some concern among Canadian consumers. Despite this challenge, companies hope
to find a solution to this issue and continue to provide quality products to valued customers. For
this reason, the poor harvest in Florida, the supply of orange juice will decrease, and at this
time, the demand for apple juice as a substitute will increase, which may force the price of
apple juice to rise if Ontario is the producer and exporter.