March 26, 2009

Supply & Demand in a Recession

Posted in Recession, Supply & Demand, Uncategorized at 7:19 pm by davidprudente

nonsequitur

October 23, 2007

Beer Inflation

Posted in Articles, Supply & Demand at 5:37 am by davidprudente

On the heels of the Molson ad I ran below comes this news: Beer Prices Barrel Higher from USA Today. Can you identify the the main reason for the price increase?

October 22, 2007

Unit 2 Exam

Posted in Basic Economic Concepts, elasticity, Price Ceilings, Price Floors, Supply & Demand at 4:36 pm by davidprudente

The Unit 2 exam on issues relating to supply and demand will be tomorrow (10/23). The exam will consist of Twenty-five multiple choice questions and one multi-part free response question. As I mentioned in class, you need to know what factors will shift the supply and demand curves; how to determine elasticity; and how a price ceiling and price floor effect markets.

Be sure you use your textbook, notes, Barron’s study guide, and the on-line resources available to you to prepare for the exam. Good luck.

October 16, 2007

Chapter 5 & 6 Homework Checks

Posted in Articles, Price Ceilings, Price Floors, Subsidies, Supply & Demand at 3:59 pm by davidprudente

The quiz for chapters 5 & 6 will be given the next time you are in class. There are 15 multiple choice questions (total).

For a little extra-credit, read this article and explain, using a properly labeled graph, if farm supports are a price ceiling or price floor. In addition, please summarize the author’s point of view in a couple of sentences. I’ll collect this on Thursday.

October 10, 2007

Chapter 5 HW Questions

Posted in Assignments, elasticity, Supply & Demand at 3:36 pm by davidprudente

Problems 2 & 3 are due tomorrow (10/11/07).

Also, I mentioned the Apple “1984” advertisement in some of my classes today. I’m posting it below as many of you have never seen (or heard) about it.

Also, check out this article about Radiohead’s new album, “In Rainbows” due out this week. They are offering the album for download on their web site. The interesting thing is, that the band is telling their fans to pay what they want for the album.

Radiohead

As economics students you should be able to predict what is going to happen here. Will this be a new “economic model” as the band thinks, or will many buyers just simply download the songs for free? Will enough buyers pay enough for this album that they subsidize all of the “free-riders”? I guess we’ll have to wait and see.

October 5, 2007

The Great Pumpkin Shortage

Posted in Supply & Demand at 5:48 am by davidprudente

greatpumpkin.jpg

Speaking of supply and demand, I saw this story and thought, how will this effect the Supply curve for pumpkins? Can you identify what variable we would say is effecting Supply?

Hey, here’s a picture of the world’s biggest pumpkin. It was grown in Rhode Island and weighed in at 1689 lbs. this past Saturday at the Topsfield Fair in Massachusetts.

here’s

October 3, 2007

Factors that Change Supply

Posted in Supply & Demand at 3:56 pm by davidprudente

Tonight you should be working on completing your reading for chapter 4. As you read, remember that understanding what causes changes in the supply and demand curves is critically important. At this point, you should recall that a change in price is associated with a movement along a curve while changes in other variable will cause the curve to physically shift.

Here’s a handy mnemonic device to help you memorize what causes a supply curve to shift:

S- subsidies and taxes
T- technology
O- other related goods prices
R- resource costs
E- expected future prices
S- size of the market (# of firms)

I’ll give you extra-credit if you can come up with a mnemonic device for the causes of a demand curve shift.