A couple of quick notes about some basic principles of economics. The first is the law of demand which states that, for most goods, when prices rise, the quantity demanded goes down. Sometime this is relationship is very extreme (very elastic), especially when there are many good substitutes and whe ...
Beer drinkers have been trading in their premium beers for economy beers as of late. In economics we’d describe this consumer behavior as trading normal goods for inferior goods. This article from CNN. Perhaps this information will be useful as Senior week approaches. Good Luck Seniors!
The Associated Press: Gas prices knock bicycle sales, repairs into higher gear Greg Mankiw has an ongoing series of posts linking to articles illustrating the impact that rising gas prices have had on demand in markets other than that of the automobile. The concept of cross-price elasticity of deman ...
Would you like to find out what those-in-the-know have to say about Budget Friendly Surround Sound? The information in the article below comes straight from well-informed experts with special knowledge about Budget Friendly Surround Sound. A good home theater and surround sound system for your movie ...
Anyone who has taken a course in economics knows about the theory of normal and inferior goods. For those new to this theory, here is how it works. People tend to be drawn to consuming higher quality items in times of economic prosperity. Consumers have an abundance of money, and therefore have more ...
