Economics appears in more places than you might think

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Unformatted text preview: w you how much of what you hear in a day has some economic content. Economics appears in more places than you might think. Can you identify some everyday phrase or statement that can easily be translated into “econospeak”? Section 36, Row 19 was $105 if you wanted to see the game between the Boston Red Sox and the Atlanta Braves. If you wanted to see a game between the Boston Red Sox and the New York Yankees the price of a seat in the same section and row was $205. The number of seats in Fenway Park is the same for all games. In other words, the supply curve of seats at Fenway Park is vertical at a little more than 36,000 seats. The demand for games at Fenway differs from game to game, Section 1 Supply and Demand Together 135 06 (128-153) EMC Chap 06 11/21/05 3:13 PM Page 136 upply and demand are at work in auctions that take place on the World Wide Web. www.emcp.net/ebay is the address of a popular auction site, eBay. By using the drop-down menu on the left side of your screen, you can browse for various items. Click on “Art,” followed by “Antique, Pre-1900.” Notice what specific items are being auctioned. Be sure to notice the highest bid for each item, the number of bids, and when the auction ends. S though. For example, the demand for a game with the Yankees is usually greater than the demand for a game with the Braves (in other words, the demand curve for a Yankees game lies to the right of the demand curve for a Braves game). As a result, the ticket price for a Red Sox–Yankees game is usually higher than the ticket price for a Red Sox–Braves game. A hotel in Miami Beach charges $150 a night for a room in June but $250 a night in January. Why the difference? A room is a room is a room, isn’t it? Well, yes, a room is a room, but the demand for the room is different at different times of the year. Winter is the “high season” in Miami Beach, because people all over the United States want to escape the cold weather where they live and vacation for a few days in warm Miami Beach. Higher demand translates into higher price....
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This document was uploaded on 01/16/2014.

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