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.

  • euro zone map

    Luxembourg Yogurt?

    Oct 13, 12 • 547 Views • No Comments

    For this Greece update, some past and current information… Soon after the euro was launched on January 1, 2002, a €76,000 bank heist near Athens became the first major euro robbery. Near Athens also, with the new currency launch, it took 3 staff......  [read more]

  • Video Game Economics

    Oct 10, 12 • 829 Views • No Comments

    Sometimes a virtual world can show us some economic reality. Here is the story: There once was a Greek economist who, for many years, happily wrote papers and taught classes, in (he said) his “academic cocoon.” However, as the euro-zone calamity......  [read more]

  • California Consumers and Gas Prices

    Oct 9, 12 • 893 Views • No Comments

    How might California be responding to $5.00 gas? Let’s start with bread machines. Behavioral economist Dan Ariely explains that when one of the first sellers of bread machines placed it on the shelf, few people were interested because they could not......  [read more]

  • Audi India's car horns are loud and very durable.

    India’s Car Horns

    Oct 7, 12 • 607 Views • No Comments

    Standing near a busy intersection in Calcutta, you would hear a horn honk every 3 seconds. Or, as one Audi India executive explained, “With the amount of honking in Mumbai, we do on a daily basis what an average German does on an annual basis.” As......  [read more]

  • Henry Ford's Model-T

    Cars For the Masses

    Oct 4, 12 • 659 Views • No Comments

    How to produce a car for the masses? Long ago, Henry Ford had it figured out and now Nissan will try it again in emerging markets. The Nissan story fascinated me because of what it represents. A car is aspirational. It is a step into the middle class. Making......  [read more]