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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    Mankiw and Colbert

    Oct 29, 10 • 127 Views • Demand, Supply, and Markets, GovernmentNo Comments

    For some smiles and econ also, the following links are fun. It all began with Harvard’s N. Gregory Mankiw’s NY Times op-ed column on higher tax rates. Explaining, he said that $1000 wisely invested, with no taxes, became $10,000 in 30 years. By...

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    Dogs, Coach, and Cars

    Oct 28, 10 • 120 Views • Demand, Supply, and Markets, Households, Innovation, Macroeconomic MeasurementNo Comments

    When you have extra income, what do you buy? In China, the more affluent consumer is buying dogs, Coach handbags, and cars. Banned in Beijing in 1983, only recently, the dog has returned as a new “best friend.” A stress reliever, a response to...

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    The Price System: Pelicans, Professors, and Murders

    Oct 26, 10 • 148 Views • Demand, Supply, and Markets, Environment, Thinking EconomicallyNo Comments

    Is a pelican worth $500? What is the value of a college professor? What does a murder cost us? Sometimes it’s tough to get a price. We know that BP owes money for wildlife lost on devastated wetlands. But how much? USA Today tells us that 2263...

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    Some Like It Hot?

    Oct 23, 10 • 109 Views • Demand, Supply, and Markets, Economic History, Economic Thinkers, Environment, InnovationNo Comments

    A warmer Detroit? A wetter New York? In the future world that UCLA professor Matthew Kahn describes, cities will adapt to climate change. Assuming that warming is gradual, populations will migrate and innovate. If San Diego becomes less habitable, people will...

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    Mobile Home Ceilings

    Oct 22, 10 • 111 Views • Demand, Supply, and Markets, RegulationNo Comments

    When the Ukiah California City Council said yes to rent stabilization for a local mobile home park, senior citizens said, “Thank you.” In NYC, 50% of all housing in Manhattan is rent regulated. Sixty years ago, concerned that the middle class...