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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    The Power of the Market: Part 1

    Jul 27, 11 • 419 Views • No Comments

    Maybe the market is more powerful than the Congress. First, some history… Hoping that farmers would earn a living wage, in 1933, the U.S. government decided to subsidize crop prices. The goal was “parity,” a level of purchasing power that......  [read more]

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    Children and Wealth

    Jul 24, 11 • 367 Views • No Comments

    More wealth seems to mean fewer children. Look at a graph of fertility in the U.S from 1800-1990. The birth line plunges. Consider India, China, South Korea, Singapore. As per capita GDP rises, births plummet. See this gapminder graph for rich countries and......  [read more]

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    Vaccine Dilemmas

    Jul 22, 11 • 382 Views • No Comments

    Let’s try to make one federal budget decision. Who should receive the meningococcal vaccine? Debating the issue, we should be sure to remember pharmaceutical companies, the vaccine’s recipients, the cost of each shot, who gets the disease, the......  [read more]

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    Venezuela’s Economic Problems

    Jul 20, 11 • 773 Views • No Comments

    Venezuela has 2 basic economic problems: The law of supply: Because price and quantity move in the same direction, if price goes down, then producers provide less. This takes us to Venezuela’s 27.1% inflation rate. President Hugo Chavez responded by......  [read more]

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    Finding Food Deserts

    Jul 18, 11 • 380 Views • No Comments

    Having just learned that the US Department of Agriculture (USDA) has a food desert website, I am not sure how we should respond. The USDA tells us that in a food desert most low-income households have limited access to a supermarket or grocery store. In the......  [read more]