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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    The Price System: Pelicans, Professors, and Murders

    Oct 26, 10 • 149 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 • 111 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 • 114 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...

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    Random Notes From Recent News

    Oct 19, 10 • 108 Views • Demand, Supply, and Markets, Government, HouseholdsNo Comments

    1. Among the U.N.’s 8 millennium goals for 2015, sustaining aging populations was not included. Why? 2. You might want to decide with whom you agree: WSJ‘s Daniel Henninger saying that “Capitalism Saved the Miners” or The Huffington...

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    Closed Professions

    Oct 17, 10 • 110 Views • Businesses, Demand, Supply, and Markets, RegulationNo Comments

    If you are a Greek pharmacist, you are guaranteed a 35% profit on the drugs that you sell, your store can be no closer than 820 feet from another pharmacy, and you probably paid close to $400,000 for a business license. Called “closed professions”...