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.

  • Dynamic Pricing for Tickets Displays the Power of Prices

    Big Ten Tickets

    Dec 9, 12 • 751 Views • No Comments

    For $75 you can see all 9 Big Ten Conference basketball games…Maybe. Here’s the story. If you buy a Golden Ticket online from the Minnesota Golden Gophers, you can attend up to 9 Big Ten games but only if Minnesota wins every time you attend. If......  [read more]

  • NYC Taxicabs, Tips and Credit Cards

    Taxi Tips

    Dec 8, 12 • 1070 Views • No Comments

    Assume you are in a NYC taxi cab. The fare is $12.00. How much of a tip do you leave? a. $1 b. $2 c. $3 d. $4   Actually, it all depends on whether you use cash or credit. People who pay in cash tend to leave a 10% tip. Those who use a [&hellip......  [read more]

  • minimum wage rates and Big Macs

    McDonald’s Delivers

    Dec 7, 12 • 2852 Views • No Comments

    McDonald’s takeout? Just call or order online and they will deliver.  But… you need to be in China. Actually, as of 2011, delivery was a part of McDonald’s competitive strategy in 18 countries. Developing nations with densely populated......  [read more]

  • The History of the Elevator is About Innovation and Economic Growth

    Elevator Economics

    Dec 6, 12 • 1325 Views • No Comments

    Where would we be without the elevator? To deliver a bed, sometimes you need an elevator. It is easy now…but not during the mid-19th century. When a bed company mechanic, Elisha Graves Otis, was asked to create a freight elevator, he knew he had to......  [read more]

  • Chinese Consumers and Fresh Apples

    Female or Male Leftovers?

    Dec 5, 12 • 765 Views • No Comments

    For Chinese women, success can be a problem. China’s working women are becoming more affluent. And perhaps for that reason, there has been a backlash. The single, intelligent, successful female has been maligned by the All-China Women’s......  [read more]