This preview shows page 1. Sign up to view the full content.
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
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....
View Full Document
This document was uploaded on 01/16/2014.
- Winter '14