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.

  • Affecting the cost of animal feed and lowering the amount of milk from cows, the drought is pushing up milk prices.

    The “Problem” of the Commons

    Jun 20, 12 • 588 Views • No Comments

    Located 30 miles from Cape Cod, Massachusetts, the island of Nantucket has no traffic lights. Instead, drivers respond to stop signs, rotaries and courtesy. More often than not, if a walker or a biker needs to cross the street, cars stop. When someone is......  [read more]

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    High and Low Notes in Panama

    Jun 19, 12 • 488 Views • No Comments

    By Mira Korber, guest blogger. As the Panama City skyline emerged from my misty Wednesday morning flight window, I must say the view was impressive. A snaking coast boasts skyscraper after skyscraper, each seeming to outdo the previous in height and marvels......  [read more]

  • Is Stadium Naming a Good Idea?

    Jun 18, 12 • 519 Views • No Comments

    Home to the Miami Heat, the American Airlines Arena is hosting the NBA finals. Last year, American Airlines declared Chapter 11. Is it the “stadium curse?” In 2000, for $100 million, Enron bought the naming rights to the home of the Houston......  [read more]

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    Tricky Oil Questions

    Jun 17, 12 • 533 Views • No Comments

    1. Asked to list the world’s biggest oil consumers, most of us would be correct if we started with the US and China. With the US at 20.5% and China, 11.4% for 2011, we are almost at one-third of world consumption. 2. But then, it gets a bit tricky.......  [read more]

  • Industries afflicted with Baumol's Disease have slower productivity growth.

    Affordable (Cambodian) Health Care

    Jun 16, 12 • 470 Views • No Comments

    A village in Cambodia had problems with affordable health care but they found a solution. Traditionally,  if someone got sick, the gods had to be appeased with an offering that might include a buffalo, a cow, some bananas, incense, rice wine, a chicken. It......  [read more]