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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    A Cashless Payoff

    Dec 14, 11 • 589 Views • No Comments

    Paying with a phone swipe makes Starbucks lines move faster. Less time in line means more productivity and society benefits. So, should we accelerate our movement toward a cashless society? Imagine having no currency. No wallets necessary? A useless U.S.......  [read more]

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    Irrational and Rational Expectations

    Dec 12, 11 • 487 Views • No Comments

    Sometimes, expectations can determine outcomes. In articles on the placebo effect, Wired and the New Yorker tell us that people tend to believe that green pills are best at diminishing anxiety, brand names are better, and medication taken 4 times daily will......  [read more]

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    Holiday Dilemmas

    Dec 11, 11 • 449 Views • No Comments

    Can doing good be bad? At food banks, the holiday season brings an avalanche of food from donors when the charity could purchase the food more cheaply and use volunteer time more wisely. As a result, charitable food donations misallocate resources. According......  [read more]

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    A Line Primer

    Dec 10, 11 • 460 Views • No Comments

    Done with grocery shopping, you scan the registers and select the shortest line. Standing there for 2 minutes, your time flies. Another minute? Okay. But then, according to research, when the time hits 4 minutes, you believe you have been there for 6 and 5......  [read more]

  • PNC Wealth Management Measures Inflation With Its Christmas Price Index

    The Christmas Price Index

    Dec 9, 11 • 456 Views • No Comments

    You might want to check the CPI (the Christmas Price Index). Calculated by PNC for the last 28 years, it tells us the value of the items in “The 12 Days of Christmas.” This year, the PNC CPI totaled $24,263.18 for anyone purchasing one set of each......  [read more]