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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    Oil Worries?

    Sep 19, 11 • 335 Views • No Comments

    Have you ever heard of Hubbert’s Peak?  No, it is not a mountain. Hubbert’s Peak refers to our oil supply. In 1956, Marion King Hubbert warned us that U.S. oil production would peak within 15 years. And, the only direction after the peak is......  [read more]

  • The Per Capital Dog Population Is An Economic Indicator

    Pooches and Prosperity

    Sep 18, 11 • 349 Views • No Comments

    In Latin America, with Brazil #1, being middle class means owning a dog. According to the Economist, more dogs mean more pet food, “knick-knacks,” and veterinary care. Based on pet food sales, the Latin American dog to cat ratio is 6 to 1. (In......  [read more]

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    More Health Care Jobs

    Sep 16, 11 • 327 Views • No Comments

    The health care industry has added 300,000 jobs to the U.S. economy during the past 12 months. New jobs, new construction, new technology, more care. Should we be pleased? This Dr. Seuss-like animated short from marketplace.org presents the downside of health......  [read more]

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    Healthcare and Baumol’s Disease

    Sep 11, 11 • 432 Views • 1 Comment

    Asked why healthcare is relatively expensive while cell phones are not, you could answer, “Baumol’s Disease.” Described by New Yorker columnist James Surowiecki, to play Mozart’s String Quartet in G minor in 1787 and now, we need 2......  [read more]

  • Dutch Disease

    Sep 10, 11 • 431 Views • No Comments

    When Norway discovered it had an oil bonanza, they acted rather surprisingly. According to this NPR Planet Money podcast, they The goal was to avoid Dutch disease. http://elsa.berkeley.edu/users/webfac/cbrown/e251_f03/larsen.pdf......  [read more]