Monday, February 20, 2006

S & D

Okay - I know some of you are getting this down perfectly, but some of you are still super-confused. Some things to think about (always make sure to describe your answer with shifts in S & D curves (since you can't draw on here) and what happens to P & Q with those changes):

1. During the year 2000, Orlando, FL was growing rapidly, with new jobs luring young people into the area. Despite increases in population and income growth that expanded demand for housing, the price of existing houses barely increased. Why?

2. The US government administers two programs that affect the market for cigarettes. Media campaigns and labeling requirements are aimed at making the public aware of the health dangers of cigarettes. At the same time, the Department of Agriculture maintains price supports for tobacco. Under this program, the supported price is above the market equilibrium price, and the government limits the amount of land that can be devoted to tobacco production. Are these two programs at odds with respect to the goals of reducing cigarette consumption?


~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Or, use S & D analysis to explain this:
http://cgi.ebay.com/100-Indian-Pure-REMY-Human-Hair-Full-Lace-Front-Wig_W0QQitemZ6848402757QQcategoryZ60188QQrdZ1QQcmdZViewItem

Why would someone pay this much?

~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Or, this:

(Swear to God, if you ask who David Gilmour is, I might scream... :) )

http://cgi.ebay.com/David-Gilmour-Radio-City-Music-Hall-PIT-CTR-CCC-04-05_W0QQitemZ6602139775QQcategoryZ16122QQrdZ1QQcmdZViewItem

Why would someone pay that much?


~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

I'll post more as I read through your comments. Enjoy!

14 comments:

Joe Madden said...

I would pay 500 bucks for some real hair. Why not? This hair is obviously in has a high demand if people are bidding for it on ebay. This increase in demand is causing the price to go up.

Joe Madden said...

sorry, ive heard of david gilmore, but i couldnt say anything about the guy. im guessing that this guy's concerts are good, which is causing the demand to be high. Also, Radio City Music Hall is big, but it has a limited supply of seats. But this supply is a constant rate, while his demand seems to be increasing. this is causing the price to be increasing. Over 60 bucks for a concert is just not worth it.

forsnic said...

dont hurt me.. i dont know who that david guy is... oh well. i'll google him. and about the hair. well if u really hate your hair THAT much i guess then its worth it. however it said they only last a year. since it is made from real hair there is a limited supply and obviously a high demand because of how many celebrities, etc. want them, so basically why not charge that much???

forsnic said...

about florida, i would have to make an educated guess and say that although demand for housing has gone up along with population, most of the houses that are already there wouldn't go up that much because the people would either build new houses in the surrounding area or since they are young they would rent apartments or condos rather than buy/build new houses.

forsnic said...

ok for all of you who the name david gilmour might have accidentally and very briefly slipped ur mind...
#David Jon Gilmour, CBE (born March 6, 1946) is an English guitarist and vocalist with British rock band Pink Floyd. Following the departure of Roger Waters in the mid-1980s, Gilmour effectively assumed control of the band.# ok so i googled and wikipedia-d it.

Joe Madden said...

i am officially ashamed of my life at this point. I am a big fan of pink floyd. I own three of their albums. I just have no clue who is in the band. Either way, one thousand dollars for one of his shows is still not worth it. I would rather invent a time machine and see floyd back in the 70's when the tickets were 20 bucks

NicolleM said...

For the hair, people obviously want it really bad, so the demand is high, so the price is going to be high.
Oh, and simply because you said to not ask about David...I really want to.

NicolleM said...

Look! Pink Floyd! Alright...now I know...
In regards to Florida, the demand will go way up, driving up prices and quantity demanded, but it won't neccesarily drive up supply. It could be that people are just living in the already exsisting apartments/condos or even renting rooms in houses. Personally, I think I'd live on the Beach...

gorman said...

i would have to agree that the demand for houses went up, which could also mean the prices go up for houses or the demadn for building new houses went up... in this case the demand for new houses is in greater demadn than the demand for existing house. this is probably why the price barely increased.

gorman said...

there is a shortage of tickets which causes the prices to rise on the concert...also this is a limited time thing so the supply is set and the demand is very high...shortages cause the prices to increase very rapidly...this is kind of like selling xbox 360 before christmas on ebay

helen said...

hair- I don't know much (ok, anything) about wigs, but they dropped a bunch of BIG names and it looked like good quality hair, and anyway, these are humans bidding on it, and humans are undeniably weird

KM said...

Good point on dropping names for the hair...it's that darn "opinions and tastes" coming out again!

Humans are weird. But usually rational. At least in their own minds. :) For example, I'm always perfectly rational. {cough}

jacnbox said...

well, i suppose in the 80's you old people (haha, i know im gonna get it for that one) did overdo it a little on the hair. if it has fallen out prematurely, then i guess $500 isnt too bad. however, i plan to keep growing my own forever, nixing the need for a wig.

jacnbox said...

rational? you teach...econmics at that! and you call yourself rational...haha.