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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    Health Care (Transaction) Costs

    Aug 22, 11 • 553 Views • No Comments

    One of the first parts of the new health care plan to be implemented, the Pre-Existing Condition Insurance Plan (PCIP) surprised its administrators.  North Carolina was ready for a “stampede” but initially only 674 people joined. Nationally,......  [read more]

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    Recycling Matters

    Aug 21, 11 • 400 Views • No Comments

    Coca-Cola has a recycling problem. Last year, it had hoped to process 100 million pounds of recycled PET (bottle grade) plastic in its Spartanburg, S.C. plant and is not even close. Here is why: Less supply of recycled plastic: It is tough to get enough PET......  [read more]

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    Stock Market Crashes

    Aug 19, 11 • 356 Views • No Comments

    How to define a stock market crash? One economic paper has 2 suggestions: “When you see it you know it.” Look at depth and duration: A 20% drop is a crash while length can vary. Several possibilities: 1 day, 5 days, 1 month, 3 months, 1 year.......  [read more]

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    Abercrombie’s “Terrible, Terrible News”

    Aug 18, 11 • 402 Views • No Comments

    Sometimes the wrong people wear the right products. It just happened to Abercrombie & Fitch. Here is the story: According to the NY Times, it all began when an employee conveyed to A & F’s CEO the “terrible, terrible news” that Mike......  [read more]

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    Patent Troll Protection

    Aug 17, 11 • 434 Views • No Comments

    We spray “OFF!” for insect protection, divers use shark repellent, and now, Google has purchased Motorola to resist patent trolls. Described in an NPR This American Life podcast, patent trolls purchase multiple patents with the intent of suing any......  [read more]