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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    Do You Approve of Profits?

    Dec 18, 10 • 223 Views • No Comments

    Two Questions: 1.How do you feel about profit? In their paper, “Is Profit Evil? Associations of Profit With Social Harm,” 3 University of Pennsylvania researchers discuss two studies that display people’s negative response to profit seeking...  [read more]

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    Big Boxes

    Dec 15, 10 • 249 Views • No Comments

    What we ship things in makes a difference. Take the banana, for example. In 1876, at the Philadelphia Centennial Exposition, the banana was a delicacy (and very black). Millions of bunches could only be sent to U.S. shores if they were refrigerated. By 1901,...  [read more]

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    Supership Problems

    Dec 14, 10 • 262 Views • No Comments

    When is a supership a problem? When the water is not deep enough or the Bayonne Bridge is not high enough. To understand the Bayonne Bridge problem (and care about the answer), we have to look back to August 1914 and then ahead to August 2014. The Panama...  [read more]

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    A Rule About Gold

    Dec 9, 10 • 240 Views • No Comments

    Yes, gold is a part of Dodd-Frank financial regulation but not exactly the way you would expect. Dodd-Frank says that businesses have to tell the SEC if the gold, tin, tantalum, and tungsten (the 3 Ts) in their supply chain provide income to rebels in eastern...  [read more]

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    How the Fed Helped Harley

    Dec 8, 10 • 237 Views • No Comments

    Have you ever thought about how, every month or every week, businesses have money for paychecks? One answer is commercial paper. It is amazing that commercial paper is central to so much economic activity and few people have even heard of it. Simply defined,...  [read more]