Comments on: Looks like the Financial Times could use a high school economics lesson! http://welkerswikinomics.com/blog/2009/05/12/looks-like-the-financial-times-could-use-a-high-school-economics-lesson/ for students and teachers of Economics Thu, 09 Feb 2012 09:13:55 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Janne J. http://welkerswikinomics.com/blog/2009/05/12/looks-like-the-financial-times-could-use-a-high-school-economics-lesson/comment-page-1/#comment-8482 Janne J. Sun, 27 Sep 2009 17:16:01 +0000 http://welkerswikinomics.com/blog/2009/05/12/looks-like-the-financial-times-could-use-a-high-school-economics-lesson/#comment-8482 A shortage occurs when the demand of a certain product is higher than the supply, meaning there is not enough product. Rising prices does not mean that there is a shortage of a product, rising prices simply means that the demand of a product is rising, therefore the price rises. Poor crops and robust demand doesn’t necessarily mean that there will be a shortage in coffee, although it may be a small factor of it. Shortages of coffee is caused by a increase in demand which was not expected, but after the rising prices more resources will be allocated to coffee and the prices will go back down. A shortage in coffee would occur if the price of the product is too low. A shortage occurs when the demand of a certain product is higher than the supply, meaning there is not enough product. Rising prices does not mean that there is a shortage of a product, rising prices simply means that the demand of a product is rising, therefore the price rises. Poor crops and robust demand doesn’t necessarily mean that there will be a shortage in coffee, although it may be a small factor of it. Shortages of coffee is caused by a increase in demand which was not expected, but after the rising prices more resources will be allocated to coffee and the prices will go back down. A shortage in coffee would occur if the price of the product is too low.

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]]> By: Christian Clausen http://welkerswikinomics.com/blog/2009/05/12/looks-like-the-financial-times-could-use-a-high-school-economics-lesson/comment-page-1/#comment-8081 Christian Clausen Tue, 19 May 2009 16:37:58 +0000 http://welkerswikinomics.com/blog/2009/05/12/looks-like-the-financial-times-could-use-a-high-school-economics-lesson/#comment-8081 1. Define “shortage”. A shortage is when the quantity supplied does not meet the quantity demanded. 2. Does the rising price of coffee indicate that there are shortages in the market? Why or why not? A shortage is usually a result of prices being too low, causing quantity demanded to be higher than quantity supplied. This suggests that there could indeed be a shortage in the market. However, since caffeine is addictive, the producers of coffee could easily increase the price of their good, without decreasing much of the demand. This is because that their consumers are likely to be slightly addicted to this good, making demand very inelastic. 4. What would lead to a shortage of coffee, based on the economic definition of the term “shortage”. A price below the equilibrium price. 1. Define “shortage”.

A shortage is when the quantity supplied does not meet the quantity demanded.

2. Does the rising price of coffee indicate that there are shortages in the market? Why or why not?

A shortage is usually a result of prices being too low, causing quantity demanded to be higher than quantity supplied. This suggests that there could indeed be a shortage in the market. However, since caffeine is addictive, the producers of coffee could easily increase the price of their good, without decreasing much of the demand. This is because that their consumers are likely to be slightly addicted to this good, making demand very inelastic.

4. What would lead to a shortage of coffee, based on the economic definition of the term “shortage”.

A price below the equilibrium price.

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]]> By: Economic Education – Option A, I don’t care how the table was created « learn4kicks http://welkerswikinomics.com/blog/2009/05/12/looks-like-the-financial-times-could-use-a-high-school-economics-lesson/comment-page-1/#comment-8010 Economic Education – Option A, I don’t care how the table was created « learn4kicks Wed, 13 May 2009 19:03:36 +0000 http://welkerswikinomics.com/blog/2009/05/12/looks-like-the-financial-times-could-use-a-high-school-economics-lesson/#comment-8010 [...] Economics Econ4u Baseline Scenario InDebtEd * http://hadm.sph.sc.edu/Courses/Econ/Tutorials.html Don’t recommend as a start if new to economics http://www.investopedia.com/university/ Tutor2u  Don’t recommend as a start if new to economics Welker’s Wikinomics   [...] [...] Economics Econ4u Baseline Scenario InDebtEd * http://hadm.sph.sc.edu/Courses/Econ/Tutorials.html Don’t recommend as a start if new to economics http://www.investopedia.com/university/ Tutor2u  Don’t recommend as a start if new to economics Welker’s Wikinomics   [...]

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]]> By: Jason Welker http://welkerswikinomics.com/blog/2009/05/12/looks-like-the-financial-times-could-use-a-high-school-economics-lesson/comment-page-1/#comment-7972 Jason Welker Wed, 13 May 2009 04:45:14 +0000 http://welkerswikinomics.com/blog/2009/05/12/looks-like-the-financial-times-could-use-a-high-school-economics-lesson/#comment-7972 Hi Colleen, Thanks for the comment! You're on the right track with your answer... let's wait and see if my students can provide the answer for you (hint: if the price of coffee has increased like the article says it has, that's evidence that there may not really be shortages!) Enjoyed your comment! Jason Hi Colleen,

Thanks for the comment! You're on the right track with your answer… let's wait and see if my students can provide the answer for you (hint: if the price of coffee has increased like the article says it has, that's evidence that there may not really be shortages!)

Enjoyed your comment!

Jason

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]]> By: Colleen Proppe http://welkerswikinomics.com/blog/2009/05/12/looks-like-the-financial-times-could-use-a-high-school-economics-lesson/comment-page-1/#comment-7970 Colleen Proppe Tue, 12 May 2009 23:19:22 +0000 http://welkerswikinomics.com/blog/2009/05/12/looks-like-the-financial-times-could-use-a-high-school-economics-lesson/#comment-7970 Hi Jason, Straight from Wikipedia(easiest, but not the most reliable source), even "A shortage occurs when there is excess demand"... and "Economic shortages are related to price—when the price of an item is "too low," there will be a shortage." I guess "robust demand" would have to be excessive demand"... and the price would also have to be "too low"... can you explain further? Thanks. Always good to learn something from you, Jason! -Colleen Hi Jason,

Straight from Wikipedia(easiest, but not the most reliable source), even "A shortage occurs when there is excess demand"… and "Economic shortages are related to price—when the price of an item is "too low," there will be a shortage."

I guess "robust demand" would have to be excessive demand"… and the price would also have to be "too low"… can you explain further?

Thanks. Always good to learn something from you, Jason!

-Colleen

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]]> By: Economic Education – Option B, I would love to read about how the table was created « learn4kicks http://welkerswikinomics.com/blog/2009/05/12/looks-like-the-financial-times-could-use-a-high-school-economics-lesson/comment-page-1/#comment-7971 Economic Education – Option B, I would love to read about how the table was created « learn4kicks Tue, 12 May 2009 18:46:36 +0000 http://welkerswikinomics.com/blog/2009/05/12/looks-like-the-financial-times-could-use-a-high-school-economics-lesson/#comment-7971 [...] Economics Econ4u Baseline Scenario InDebtEd * http://hadm.sph.sc.edu/Courses/Econ/Tutorials.html Don’t recommend as a start if new to economics http://www.investopedia.com/university/ Tutor2u Don’t recommend as a start if new to economics Welker’s Wikinomics  [...] [...] Economics Econ4u Baseline Scenario InDebtEd * http://hadm.sph.sc.edu/Courses/Econ/Tutorials.html Don’t recommend as a start if new to economics http://www.investopedia.com/university/ Tutor2u Don’t recommend as a start if new to economics Welker’s Wikinomics  [...]

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