Posts Tagged ‘supply’

  • Singapore's Expensive VW Passats

    Singapore’s Pollution Solution

    Sep 25, 12 • 592 Views • No Comments

    When a country’s economy is ranked the 2nd freest in the world, how do they manage auto congestion and pollution? By auctioning a limited number of vehicle permits, Singapore makes owning a car very expensive. A VW Passat in Singapore could cost as......  [read more]

  • Prices convey information.

    Speed Pricing

    Sep 6, 12 • 688 Views • No Comments

    What does a price tell you? Assume that you were going to purchase a GE Advantium 120 microwave oven on Sunday, August 12. Comparing Sears, Best Buy and Amazon’s sellers at 3 a.m., you would have seen, respectively, $899.99, 809.99 and 744.46. At......  [read more]

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    Higher Prices at the Gas Pump

    Aug 22, 12 • 569 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 • 1005 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 • 500 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]