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.

  • 16248_7.2_000004853053XSmall

    Now It’s Chocolate

    Mar 15, 11 • 242 Views • No Comments

    According to one recent news article, a Cadbury chocolate bar is missing 2 chunks but the price is the same. First we had a hedge fund trying to corner the cocoa bean market. Then came political turmoil in the world’s leading cocoa producer, the Ivory...  [read more]

  • Displaying different strategies, McDonald's and Starbucks call a 16 ounce cup different names.

    More Conspicuous (Coffee) Consumption

    Mar 11, 11 • 300 Views • No Comments

    The same story. But now it is about coffee. Increasingly affluent, the Chinese have begun to drink more coffee (in addition to using more oil, eating more meat and buying more handbags). When talking about China, the International Coffee Organization says...  [read more]

  • 16238_2.21_000006135757XSmall

    Would You Use the Strategic Petroleum Reserve?

    Mar 10, 11 • 175 Views • No Comments

    I am not sure what a giant salt cave is and cannot quite imagine 727 million barrels of oil. But, put them together and you have our Strategic Petroleum Reserve.  Concerned with supply disruptions after an OPEC embargo during the 1970s, Congress...  [read more]

  • 16229_11.11_000012487089XSmall

    From China to Iowa

    Mar 5, 11 • 219 Views • No Comments

    We can travel very quickly from China to Iowa. In an excellent report from The Economist on feeding the world, you can see how an increasingly affluent Chinese urban consumer affects many of us. One example connects more Chinese meat consumption to soaring...  [read more]

  • 16227_2.21_000006135757XSmall

    Oil Dilemmas

    Mar 4, 11 • 246 Views • No Comments

    The good news? We are driving more again–more miles than any year since 2007. The bad news? We are driving more again–more miles than any year since 2007.. Here are the facts from a WSJ article. With the recession and higher gas prices,...  [read more]