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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    Putin’s Economics

    Apr 29, 11 • 322 Views • No Comments

    Our story begins during February when Russian Prime Minister Putin decided to freeze gasoline prices. Oil companies had a predictable response. They left. Following the money, they redirected their supply to higher prices elsewhere. The result? Russian...  [read more]

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    A Tank of Gas

    Apr 27, 11 • 455 Views • No Comments

    A tank of gas is not just a tank of gas. Isn’t it a spending decision? The national average for a gallon of regular is close to $3.88 and higher in California. July 2008 was the last time we dealt with 4 dollar gas. One economist estimated that 4 dollar...  [read more]

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    “Buy Australian?”

    Apr 25, 11 • 340 Views • No Comments

    In Australia, concerned about the impact of twin disasters in Queensland this summer, Australia is saying, “Buy Australian.”  But they just faced an unexpected problem. The T-shirts they are using to publicize the campaign were made in...  [read more]

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    Egg Surprises

    Apr 24, 11 • 332 Views • No Comments

    Egg prices are actually down. Averaging $1.73 a dozen during March, egg prices have fallen by 5% from March a year ago. So, yes, the CPI says the increase for food prices is up 2.7% during the past 12 months (March 2010-March 2011). But not for eggs. We could...  [read more]

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    Green Elasticity

    Apr 23, 11 • 386 Views • No Comments

    Sales of Nature’s Source Scrubbing Bubbles tub have plunged by 61%. At Stop & Shop, “Eco-friendly” people are switching from Clorox Green Works All-Purpose Cleaner to traditional Fantastic. Why? Because Fantastic is 40 cents cheaper....  [read more]