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.

  • 15925_3.1_000005787159XSmall

    Health Care Insight

    Oct 4, 10 • 116 Views • Demand, Supply, and Markets, Government, Households, Macroeconomic Measurement, RegulationNo Comments

    Perhaps it all began when President Lyndon Johnson called Wilbur Mills, chairman of the House Ways and Means Committee. “Wilbur, I’ve just been looking through the polls here, and I’ve only got a few weaknesses, and the worst of them is that...

  • 15923_4.26_000006278830XSmall

    Inflation Stories

    Oct 3, 10 • 178 Views • Demand, Supply, and Markets, Economic History, Money and Monetary PolicyNo Comments

    Arrive at a supermarket at the same time everyday? Require cash instead of credit?  Stop making beer? Why? The answer to each question is INFLATION. We are told that the Fed is always worried about inflation. If you know that you should worry too but...

  • 15916_9.29_000007709084XSmall

    More Than Chicken Feet

    Sep 29, 10 • 153 Views • Businesses, Demand, Supply, and Markets, Developing Economies, Economic Thinkers, International Trade and FinanceNo Comments

    Chicken feet are back in the news. But the story is about much more. A delicacy in China, chicken feet are a perfect U.S. export. Except for animal feed, there is little demand for them in the U.S. By contrast, the Chinese want our chicken feet. They are fat...

  • 15914_4.1_000004760445XSmall

    Popcorn Margins

    Sep 28, 10 • 136 Views • Businesses, Demand, Supply, and MarketsNo Comments

    Higher quality film? Better projectors? Online ticketing? No. The “most important technological innovation since sound” was the armrest cup holder (according to a movie theater owner). Please think about a cup holder. The cup holder makes huge...

  • 15912_3.31_000006925306XSmall

    V.O.D. Wars

    Sep 27, 10 • 114 Views • Businesses, Demand, Supply, and Markets, RegulationNo Comments

    Usually, for an average of 120 days, theaters have an exclusive right to show a movie. Then, for about $4.99 we can use video-on-demand to see it on television. It sounds simple but so much more is happening. It all relates to competition. The first step was...