Demand Headlines

1. Complementary: "Justin Timberlake purchases some new cufflinks to go with his suit and tie."

2. Substitute: "Banana consumption in monkeys has decreased since they are now all eating kiwi."

3. Elastic Demand: "Girl scout cookie sales drop due to a change in price of $40 a box."

4. Inelastic Demand: "Price of medicine doubles but people are still lining up for a bottle of Dayquil."
     
     When people get sick they look to relief in any way they can. Usually, this results in consumers buying medicinal products and short term relief from the symptoms of their cold, flu, stomach ache, etc. Even if prices reach an all time high, people won't stop getting sick and therefore will not stop buying medicine. People are willing to invest a little more of their money towards relief from their sickness and think it is a valuable enough thing to spend money on. Since consumers often need to continue on with their lives even if an illness gets in the way, spending money on things like Dayquil, Tylenol, and Sudafed is something that people will do no matter the cost because the loss they would experience if the were unable to work due to the symptoms of being sick would be more costly then spending on a bottle of medicine.

"Demand and Utility"

In the next week, I expect to exhibit economic demand for:
1. Gas-so that I can get to school, the gym, and the store
2. Gym membership-in order to be healthy and improve my fitness
3. Rat food-since my neighbor needs me to take care of her rat and adopt it

"Markets"

I think that a market economy is a great thing for a country to take advantage of. By using a market economy, individuals in the community are the ones who are making most of the major economic decisions. Everything is based on what they choose to consume and the things that they decide to spend their money on. If people are spending a lot of money on a certain type of jacket, then companies will start producing more of these jackets and will work to make them nicer and better priced. A problem with a market economy is that not everyone's need in the society do not get provided for (such as very young and very old people who may need help or assistance from the government). In general, I think this system is a good and successful way to control the economy and let society decide how they want to make decisions about products and services.

Opportunity Cost Blog

Last week when I was still a little bit sick, I had to decide whether or not I wanted to go to the gym and workout. I chose to stay home because I was coughing and I had some homework. Because I decided to stay home, I ended up eating way too many cookies and had tons of chips and mango salsa (my favorite). Since I ate so much, I felt extrememly sick and my stomach hurt all night. If I had gone to the gym, I wouldn't have eaten so much junk food and I would be more fit and healthy. I should have gone to the gym.

Scarcity

Money is a scarcity in my life since I am jobless at the moment. Being jobless is stressful because money is needed to do basically anything. Money buys necessities and is important for going out and having fun with friends.