econlife on ‘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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    Search Engine Competition

    Feb 14, 11 • 95 Views • Businesses, Demand, Supply, and MarketsNo Comments

    Reading about Lillian Virginia Mountweasel in the 1975 edition of the New Columbia Encyclopedia, you would have discovered that she, a fountain designer and rural mailbox photographer, died in an explosion when working for Combustibles magazine.  But she...

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    Who Owns Deutsche Borse?

    Feb 11, 11 • 106 Views • Demand, Supply, and Markets, Economic History, Financial Markets, International Trade and FinanceNo Comments

    Hearing that Deutsche Borse will probably purchase the New York Stock Exchange, commentary focused on a German firm acquiring the symbol of U.S. capitalism. But who owns the German firm? According to the WSJ, Americans are major shareholders with 41% of...

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    Who Needs a License?

    Feb 9, 11 • 97 Views • Businesses, Demand, Supply, and Markets, Economic Debates, Innovation, Labor, RegulationNo Comments

    What does a hair salon “shampoo specialist” have in common with a private detective? In certain states, each needs a license to do business. But what might licensing involve? For a Texas shampooer, it includes 150 hours of classes while a...

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    Happy Rice Farmers

    Feb 8, 11 • 113 Views • Demand, Supply, and Markets, Developing EconomiesNo Comments

    With a typical Egyptian household spending 38.3% of its budget on food in 2008, you can see why soaring food prices could fuel turmoil. But what about the other side? For Senegal farmer and trader, Ndeye Sarr Diop, rising rice prices were an opportunity. The...

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    A Race Between Supply and Demand

    Feb 7, 11 • 109 Views • Demand, Supply, and Markets, Developing Economies, Economic Debates, EnvironmentNo Comments

    In a wonderful Chip Bok cartoon, a child starts by asking, “Why are gas prices so high?” and is told, “Turmoil in the Mid East.” Then, asking about the turmoil, he is told the source is “High Food Prices.” The reason for...