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.

  • Our Transportation Infrastructure is Crumbling

    A Path for Driverless Cars

    Nov 3, 12 • 1166 Views • 2 Comments

    A self-driving car could be a pleasure… The day would begin with a pick-up that you scheduled through your phone app. When your self-driving car arrived at your front door, you would get in, check today’s drive time and start to prepare for your......  [read more]

  • Gasoline prices add 9/10 at the margin

    A New Name for Price Gouging

    Nov 2, 12 • 759 Views • No Comments

    Yesterday, a friend of mine waited on a gas line for 3 hours to fill his tank. The price was close to normal but the line was not. Hearing about gas lines, I remembered when Boston’s water supply was temporarily undrinkable several years ago and......  [read more]

  • How much should cities plan for the storm of the century?

    A Ripple of Problems From Hurricane Sandy

    Nov 1, 12 • 573 Views • No Comments

    Reading economist Arnold Kling’s explanation of why it will take a very long time to return to normal from Hurricane Sandy, I kept thinking of my own NJ disaster devastated neighborhood with downed trees on roads covered with branches, leaves and wires.......  [read more]

  • How much should cities plan for the storm of the century?

    Storm Warnings

    Oct 28, 12 • 553 Views • No Comments

    Some thoughts today about predicting natural disasters. Weeks before 308 people perished in L’Aquila from an earthquake, a government commission proclaimed the chance was slim that a disaster would occur. It did happen and now, the 6 scientists and......  [read more]

  • euro zone map

    A New Greek (Economic) Fuel: Olive Oil

    Oct 26, 12 • 2695 Views • No Comments

    The Greek government needs its newest bailout infusion. But in return, austerity would include (among many other requirements) cutting certain civil servants’ salaries by as much as 35%, raising the retirement age again but this time to 67, and......  [read more]