Topic > Online shopping increases Aramex's profits by 4% and rent...

Article 1The chosen article is "Online shopping increases Aramex's profits by 4%" extracted from The National (Barnard, 2014 ). Three main microeconomic concepts, namely demand, law of demand for complements and elasticity, would be used to analyze the article. The article talks about the increase in Aramex's profit due to the increase in online shopping. This item is a clear example of demand for 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 for the other. Online retailing is a new introduction to the world of shopping. It was well received around the world, but in the Middle East the reception was rather slow at first. As awareness has spread through various methods of advertising, consumers have become more aware of the benefits of online retailing, the growth in credit card acceptance and the increased security involved in online transactions has led to an increase in demand for online retail. The Middle East online market is expected to grow from $9 billion in 2012 to $15 billion in 2015 according to PayPal Mena. In the graph D1 is the original demand curve for online retail. As awareness has grown among consumers there has been a rightward shift towards D2 showing an increase in demand for online retail. Aramex is a leading global transportation and logistics company. The company's earnings increased 14%. First quarter net profit rose to Dh78.8 million, up from Dh69.3 million in the first three months of 2013. Revenue increased 6% from a year earlier, from Dh803 million. Dirham to Dh852 million between January and March 2014. . middle of the paper ......d an instant increase in the rents of residential units, forcing tenants to move from prime areas to off prime areas, this shift ultimately led to a drastic increase in rents of residential units in the off main areas. However, in the long term, rent control is expected to come under control sooner or later because it is obvious to landlords that without rent control it would be impossible for them to make a profit. References Nair, Manoj, 2014, 'Rent cap removal hits Abu Dhabi', Gulfnews, accessed 25 April, http://gulfnews.com/business/property/uae/rent-cap-removal-hits-abu- dhabi-residents-1.1316937 Price ceilings, product quality and consumer welfare - Springer 2014. Price ceilings, product quality product and consumer well-being - Springer [ONLINE] Available at: http://link.springer.com/article/10.1007%2FBF01229240#page-1 4, 2014].