Demand, Supply, and Markets

The ideas that explain how a market system functions, demand, supply and markets focus on consumer and business behavior. On the demand side, price is an incentive that encourages buyers to want more when low and less when high. On the supply side, with profit as an incentive, a higher price stimulates more production. Through examples, econlife looks at the countless individuals and groups composing the demand and supply sides of markets to see how price and quantity are determined.

  • carouselhorse

    Jumping (or Not) and Unemployment

    Apr 10, 12 • 476 Views • No Comments

    By Mira Korber, guest blogger. Pretend for a moment that you are mounted on a jumping horse approaching an obstacle full speed.  The next thing you know, you go hurtling through the air like some limp animal. What happened? Your ever-so-noble-steed has......  [read more]

  • Golf_human capital formation...000019059879XSmall

    The Augusta National Golf Club and Women

    Apr 7, 12 • 377 Views • No Comments

    Has the value of a woman changed at Augusta National Golf Club? Samuel Palmisano, Louis Gerstner and John Akers are former IBM CEOs with Augusta National Golf Club green blazers. Until now,  the CEOs of all major corporate sponsors of the Masters at Augusta......  [read more]

  • Pizza..16659_5.5_000015914228XSmall

    Pizza Price Wars

    Apr 5, 12 • 688 Views • 2 Comments

    No one wins a pizza war. Having read a NY Times article about a pizza price war in NYC, I was curious about the supply side of the pizza business. So, this afternoon, I interviewed my local pizza counterman. The pizza price war in midtown NYC involves 3......  [read more]

  • UK Pasty_000018649371XSmall

    Pasty Tax Issues

    Apr 3, 12 • 479 Views • No Comments

    The UK’s pasty (PASS-tee) tax battle is a good story. But, moving beyond the humor, it has considerable significance. First the story: Taxing the pasty has created a major flap in the UK. The pasty looks like meat in a pastry pouch, high in fat, maybe......  [read more]

  • Industries afflicted with Baumol's Disease have slower productivity growth.

    Should Supreme Court Justices Know Economics?

    Apr 1, 12 • 374 Views • No Comments

    Just some thoughts today about economics and the Supreme Court. Listening to Tuesday’s oral arguments,  I became concerned about some economic basics. Markets and insurance were key ideas. However, no one defined a market and insurance was initially......  [read more]