Econ 2200 Notes 3-31-2011 (1)

Econ 2200 Notes 3-31-2011 (1) - Econ 2200 Notes from...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ 2200 Notes from 3-31-2011 B. Growth of the “Consumer Culture” o 1922-1929: Growth in consumer durables purchases ≈ 8.3% per year o Linked to growing network of dependable electrical power supply o Widespread ownership of automobiles Ford Model T (video clip): over 15 million produced 1908-1927 1913: Ford introduces mechanized, conveyor-belt assembly line Which further specialization and division of labor…side note: C increased (consumer spending) Reductions in per-unit cost: created economies of scale. .. side note: all supported sub-urban growth Reductions in price: 1908 about $850; By mid 1920’s < $300 ↑ Government support for (paved) road-building (p. 396) o Durable Consumer Good % purchased on credit in1925 Radios 75% Household Appliances 80% Furniture 70%
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Automobiles 75% The goods itself, provided collateral for the credit. o new products prices installment plans All of which stimulated demand, thus encouraged C to increase…In fact, real prices for most consumer durables fell on 1920’s as S increased more rapidly than D o ↑ demand for leisure activities, especially among middle-class
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

Econ 2200 Notes 3-31-2011 (1) - Econ 2200 Notes from...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online