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.

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    Israeli Cottage Cheese Boycott

    Jun 21, 11 • 370 Views • No Comments

    News articles say that the Israelis are “cheesed off” and “curdled.” Angered by the soaring price of cottage cheese, a Facebook consumer group of 70,000 friends has agreed to stop buying it on July 1. The headline on the boycott page...  [read more]

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    The Vitamin Police

    Jun 18, 11 • 303 Views • No Comments

    Most of the corn flakes that we eat in the U.S. are illegal in Denmark because they have vitamin supplements. Consequently, the NY Times tells us that large food companies like Kellogg’s and small stores stocking Marmite, have to undergo an expensive...  [read more]

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    Euro-Zone Rates

    Jun 17, 11 • 358 Views • No Comments

    Please match each of the following countries with its unemployment rate and borrowing rate: Countries: Germany, Greece, Ireland; and the U.S. and the U.K. Unemployment rates: 9.1%, 7.7%, 7%, 15.9%, 14.8% 2-year bond rates: .5%, 4.5%, 1.75%, 29.69%, 12.95% The...  [read more]

  • Ethanol’s Unintended Consequences

    Jun 17, 11 • 335 Views • No Comments

    http://online.wsj.com/article/SB10001424052702304432304576369933829499132.html?mod=WSJ_newsreel_opinion...  [read more]

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    Trading Places

    Jun 14, 11 • 381 Views • No Comments

    A switch has taken place. More than half of our imported goods used to come from the G-6 countries (Canada, France, Germany, Italy, Japan, the U.K.) Now, we import more from China, Mexico and Brazil. Specifically, in 1987, 55% of U.S. merchandise imports came...  [read more]