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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    Who Needs a License?

    Feb 9, 11 • 256 Views • No Comments

    What does a hair salon “shampoo specialist” have in common with a private detective? In certain states, each needs a license to do business. But what might licensing involve? For a Texas shampooer, it includes 150 hours of classes while a...  [read more]

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    Happy Rice Farmers

    Feb 8, 11 • 258 Views • No Comments

    With a typical Egyptian household spending 38.3% of its budget on food in 2008, you can see why soaring food prices could fuel turmoil. But what about the other side? For Senegal farmer and trader, Ndeye Sarr Diop, rising rice prices were an opportunity. The...  [read more]

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    A Race Between Supply and Demand

    Feb 7, 11 • 245 Views • No Comments

    In a wonderful Chip Bok cartoon, a child starts by asking, “Why are gas prices so high?” and is told, “Turmoil in the Mid East.” Then, asking about the turmoil, he is told the source is “High Food Prices.” The reason for...  [read more]

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    Military Business

    Feb 5, 11 • 249 Views • No Comments

    Choosing between “guns and butter” (or missiles and margarine), national leaders think of the military for guns and the private sector for “butter.” Not Egypt, though. As far back as the 1970s, when peace with Israel meant less to do...  [read more]

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    The Economic Response to Riots

    Feb 1, 11 • 185 Views • No Comments

    When the rioting starts, where does economic activity stop? In Egypt, gas and food were immediately affected. One owner of an Alexandria Mobil Station said he had not gotten a gas delivery for 2 days. The price of certain foods soared. One kilogram (close to...  [read more]