Monday, October 29, 2012
Minimum Wage
A Federal minimum wage should be enforced by the government because it is in the interests of those employees who receive these minimum wage paychecks. However, there should be some regulations and exceptions to this. Teenagers who are seeking a job to earn extra cash and experience the responsibility of a job should receive a lower Federal minimum wage, such as $5.25 per hour, which is set for working people of the ages 13-17. The Federal minimum wage for all other workers 18 and older should be raised because, most likely, they are working to help pay for a college education or to be able to pay bills, support a family, and meet the standard of living. A minimum wage that appears appropriate for these needs would be $8.00.
Price Floors
Price floors should not be enforced by the government because it seems unnecessary to apply price floors to goods and services that we purchase. Since a price floor raises the price of the product above the equilibrium price, it
causes consumers to fork over more money for a product they would otherwise be willing to pay for. This would result in less demand and excess product for the company to deal with. If a producer of a good or service would like to set their product to a ridiculously low price, they should have the right to because it would benefit the few who are able to purchase the small supply of the product that would be available.
Price Ceilings
Price ceilings should be imposed on technological products such as computers and laptops so these products can be available to the lower class so they can be provided with technologically skills that are necessary in this type of job market. Although this would cause a shortage in supply to everyone demanding computers, the tech skills gained through the computers purchased would benefit our country and the individuals who are able to secure a higher wage job because of these earned skills. If this ceiling was imposed for an extended period of time, the companies would eventually be able to conform their supply curve to the new demands and may even be driven to lower the cost of manufacturing computers, through better engineering and design, to make up for the lack of profits earned.
Wednesday, October 17, 2012
Thursday, October 11, 2012
Demand Finale
I have personally exhibited purchasing a Substitute Good, which is a good that a consumer purchases in place of another one that has become less affordable. In class, we learned that since the income of that person remains the same, they are driven to purchase a cheaper substitute when the price of the original good rises. In result, the demand for the other product goes down if this becomes a trend among consumers.
Last week I needed to buy sticky notes for an English assignment. I was searching for a stack with a price below $2.00. I found some for more than $2.00 and wasn't willing to purchase that brand for that much with very little product. I searched some more and found substitute sticky notes for a cheaper price and they worked out great. This exhibited my use of a substitute good because I purchased a cheaper product, which served the same purpose (or utility) as the other good, in place of the more expensive product.
Question: When an original product is substituted, does it mean that the original product has elastic demand?
Last week I needed to buy sticky notes for an English assignment. I was searching for a stack with a price below $2.00. I found some for more than $2.00 and wasn't willing to purchase that brand for that much with very little product. I searched some more and found substitute sticky notes for a cheaper price and they worked out great. This exhibited my use of a substitute good because I purchased a cheaper product, which served the same purpose (or utility) as the other good, in place of the more expensive product.
Question: When an original product is substituted, does it mean that the original product has elastic demand?
Wednesday, October 10, 2012
Friday, October 5, 2012
Wednesday, October 3, 2012
Headlines
Complimentary Demand: Government requires every household to own dogs; owners barking up pet food companies' "trees".
Substitute Demand: Study indicates carrying backpacks is damaging to teens, rolling backpacks now trending.
E l a s t i c Demand: Carbonation of water now inexpensive, soda sales bubble over.
Inelastic Demand: Price of cereal rises with corn, parents pulling on "ears."
News Article:
What comes to mind when you think of corn? Processed foods? Bread? What about pet food? The truth is that it's in most processed foods, and with the price of corn on the rise, foods such as cereal and bread and those fruit juices and beverages become more expensive. And with many kids eating cereal as their daily breakfast meal, it is expected that the demand for cereal will not fall drastically. Sheila, a mother of four commented on the topic, "Another thing to fork over more money for, but I'm going to do it since there is, at least in my family, no alternative for breakfast. We just don't have time to actually cook a meal." From market experts, we've heard that they don't expect a negative effect on the market from this uprising news. "Corn is in many things and people aren't aware of it. They may not purchase corn directly but by purchasing other products, such as cereal, they're keeping up the demand of a highly demanded resource." Although you may not know it, the demand for corn, even when the price rises, is virtually unwavering.
Substitute Demand: Study indicates carrying backpacks is damaging to teens, rolling backpacks now trending.
E l a s t i c Demand: Carbonation of water now inexpensive, soda sales bubble over.
Inelastic Demand: Price of cereal rises with corn, parents pulling on "ears."
News Article:
What comes to mind when you think of corn? Processed foods? Bread? What about pet food? The truth is that it's in most processed foods, and with the price of corn on the rise, foods such as cereal and bread and those fruit juices and beverages become more expensive. And with many kids eating cereal as their daily breakfast meal, it is expected that the demand for cereal will not fall drastically. Sheila, a mother of four commented on the topic, "Another thing to fork over more money for, but I'm going to do it since there is, at least in my family, no alternative for breakfast. We just don't have time to actually cook a meal." From market experts, we've heard that they don't expect a negative effect on the market from this uprising news. "Corn is in many things and people aren't aware of it. They may not purchase corn directly but by purchasing other products, such as cereal, they're keeping up the demand of a highly demanded resource." Although you may not know it, the demand for corn, even when the price rises, is virtually unwavering.
Monday, October 1, 2012
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