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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    From China to Iowa

    Mar 5, 11 • 244 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]

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    Oil Dilemmas

    Mar 4, 11 • 271 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]

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    Ivy League Games

    Feb 26, 11 • 356 Views • No Comments

    Joining Harvard and the multitudes they hoped would follow, in 2006, Princeton eliminated its early admissions option. Now, with Harvard and the University of Virginia, Princeton has said it will return to early admissions because few followed. The Economic...  [read more]

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    An Oil Surprise

    Feb 24, 11 • 278 Views • No Comments

    As the turmoil in the Middle East unfolds, if you want to sound knowledgeable about oil, you could just say $147, contango and floating storage. As you can see on this graph, it was mid-July, 2008, when the price of oil peaked at slightly more than $147 a...  [read more]

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    Cotton Markets

    Feb 23, 11 • 294 Views • No Comments

    On November 10, 2009, the price of 1 pound of cotton was 59.2 cents. A year later it was $1.02 and now, it is close to $1.90. For many of us, the result will be more expensive jeans, more polyester, and smaller buttons. 7 For all Mankind and North Face said...  [read more]