Posts Tagged ‘supply’

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    Higher Prices at the Gas Pump

    Aug 22, 12 • 444 Views • No Comments

    Sometimes 25 cents at the gas pump can make a huge difference. Economist James Hamilton explains why with his “rough rule-of thumb” correlation between the price of crude and gas at the pump. When crude increases by $10 a barrel, then the price of......  [read more]

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    Lobster Economics

    Jul 24, 12 • 739 Views • No Comments

    The year is 2008. Icelandic banks crash. Canadian lobster processors lose their financing. The result? Demand from Canadian processors for Maine’s lobster harvest decreases. Meanwhile, on the supply side, the lobster population is soaring. Conservation......  [read more]

  • gasoline...nozzle..gas pump..15483_iStock_000006386775XSmall

    Why Do Gas Prices Rise Quickly and Fall Slowly?

    Jun 23, 12 • 381 Views • No Comments

    At your local gas station, you might be seeing some sticky prices. Although barrels of West Texas Intermediate (WTI) and Brent Crude have steadily gotten cheaper, the price at the pump has had a less steep downward trajectory. One economic study observed......  [read more]

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    Manufacturing and the Market System

    May 30, 12 • 384 Views • No Comments

    Adam Smith might look at recent increases in manufacturing and say, “The market works.” Here are some stories. One furniture manufacturer decided it could make consumers happier by moving back from China. Yes, it would mean paying a sander $10 an......  [read more]

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

    Should Supreme Court Justices Know Economics?

    Apr 1, 12 • 322 Views • No Comments

    Just some thoughts today about economics and the Supreme Court. Listening to Tuesday’s oral arguments,  I became concerned about some economic basics. Markets and insurance were key ideas. However, no one defined a market and insurance was initially......  [read more]