When economists talk about supply and demand, they usually discuss prices of “related goods” as one of the determinants of demand for an item. (see here for a video.) Related goods can be either substitutes- things that are consumed instead of one another- or complements- things that are consumed together. In other [...]
Entries Tagged as 'Econ 101'
Dilbert Exposes The Logic Of Complements And Loss Leaders…
July 21st, 2010 · 7 Comments
Buyer Beware · Econ 101
Tags: Buyer Beware · Econ 101
I Was Gonna Write This Post, But Then I Got High…(No Worries, It’s Almost Legal)
July 12th, 2010 · 17 Comments
Econ 101 · Policy
I was gonna write this post, until I got high
I was gonna get up and find my notes, But then I got high
My post is still not done and I know why, (why man) ‘cuz I got high
Because I got high
Because I got high
– Afroman, with a little help from econgirl
Normal people procrastinate by [...]
Just For Fun: I’m Pretty Sure This Is Not How Competitive Markets Work…
July 3rd, 2010 · 1 Comment
Econ 101 · Just For Fun · Markets
…and I’m kind of an expert, so I should know.
So one of the features of a competitive market is that companies can freely enter the market and compete with existing companies. This feature means that if one company is pricing an item higher than it needs to in order to stay in business and [...]
Tags: Econ 101 · Just For Fun · Markets
On Guns, Butter and Broken Windows, Now With More Oil…
June 20th, 2010 · 5 Comments
Econ 101 · Environmental Econ · Macroeconomics
I suppose I shouldn’t be surprised that the “but the oil spill is creating jobs” line is being trotted out in political circles, since this is often where economic and political realities come together to crash and burn in an intellectual blaze of glory. Here’s the reality: everyone in this debate is both [...]
Tags: Econ 101 · Environmental Econ · Macroeconomics
Dear BP: I Would Like My 75 Cents A Pound Back Please…
May 28th, 2010 · 7 Comments
Econ 101 · Environmental Econ
Let me get the typical reactions to the BP mess out of the way first: RAWR! Oil everywhere! RAWR! Pelicans! RAWR! Should have been more careful! RAWR! Who would have thought that giant oil funnels were not a good idea? RAWR! Maybe Kevin Costner can [...]
Tags: Econ 101 · Environmental Econ