Minimum Wage, yo

    In my opinion, I believe that the Federal minimum wage should be set to $8.50 per hour because this allows all working Americans to live in the middle class and not be subjected to poverty. This price permits employers to hire enough people to help maintain a business, as well as sustain satisfaction within the workers. Happy workers create faster, more efficient production; therefore, machines do not have to run all night. This reduces the cost of electricity bills. The minimum wage currently is $7.25 per hour. I do not think this is enough for Americans to live a happy life, without being on the borderline of poverty. The government should be considering the idea of raising the minimum wage slightly, in order to benefit Americans. However, raising the minimum wage could increase the price in housing and property tax. Would this still force millions of Americans into poverty?

Price Floors, yo

   I agree to the idea of price floors in our economy because it ensures the yearly profit for certain businesses. For example, farmers who grow wheat, corn and soybeans are guaranteed a profit for their farm because of the economy's ability to increase motivation in supply. With the government's control on how low crops can be charged, the price floor becomes greater than the equilibrium price. However, this decreases demand; therefore, this results in a surplus amount of goods. On the other hand, within a few short years, this change in the market economy will eventually balance out, and demand will have to fluctuate to the price crops are set. Due to an inelastic demand for wheat, corn and soybeans, consumer's will have to fluctuate to the increase in price, in order to remain healthy.

Price Ceilings, yo

   I agree that the government ought to put price ceilings on specific items because it allows consumers to be able to purchase goods without having to worry about the increase in price. This can be seen within the constant issue of starvation in the US. In my opinion, I believe that the government should put a price ceiling on food in order to lower the number of hungry children and adults. Therefore, this makes our country look prosperous, as well as healthy and stable. In addition, malnutrition would drastically decrease. Although suppliers will not be satisfied due to the negative decrease in profit, overtime, suppliers will be able to adjust to the demand and be able to make a profit. This ideology would take several years, but with the government's help, it could be made possible.

Supply Schedule & Curve/Inelastic &Elastic Supply Curves (with Examples)/ New Supply Schedule (Increase & Decrease)

Demand Finale (Elastic Demand)

    While we were in class learning about elastic demand, and how a price increase in a product leads to a drop in quantity demanded, I realized that this really applies to my life. I experienced elastic demand when I decided to purchase an I-pod touch and buy I-tunes music for it. Each song I would buy, would always cost $.99. A couple months later, the price of each song on I-tunes increased from $.99 to $1.29. This frustrated me because I did not have the time, nor money to continuously purchase an I-tunes gift cards after only buying a few songs. At that moment, I decided to stop spending my hard-earned money on I-tunes altogether. I thought that the price would eventually lower down again to $.99, but unfortunately it has not yet. So, I'm stuck with the same old music.
    Suddenly, an idea hit me: What if I spend money on CD's instead of I-tunes music? The price of CD's has dropped dramatically and I have found my favorite music on a CD with 20 songs for $5.00! Currently, I am investing in CD's as a substitute to my I-pod. In my opinion, I believe that I am saving my money and spending it wisely on music. I have discovered that finding alternatives to elastic demand products, in the end, leads to a wise money-making decision. 
    I would like to learn more about the necessity of substitutes, due to a dramatic increase in price from an elastic demand product.

Demand Wrap Up, yo

Inelastic/Elastic Demand

Demand Headlines, yo!

Complementary Demand: Gas prices triple; the demand of cars has "tanked" dramatically!

Substitute Demand: Farmer's strike; cost of crops "grows".

E L A S T I C Demand:The price of boats "sinks" and people "cruise" to the nearest motor boat shop.

Inelastic Demand:  Water bottle prices quadruple, a "tsunami" of people leave grocery stores with a "wet head".


Inelastic Demand:
    

           Dasani water bottle prices have increased from $1.50 to $6.00 per bottle. The company has decided not to create an action plan to lower the cost. Water bottle prices quadruple, and this creates aggravation to consumers. Dasani refuses to participate in any kind of interview, despite our pleas and requests. According to a recent Dasani water bottle market analysis, prices are expected to lower, but over the course of five years. Since Dasani refuses to be interviewed, we decided to interview one of the company’s priority consumers, Jackson Waltz, a loyal customer said, “ I cannot believe Dasani would allow their prices to overinflate like this, although I will continue to purchase from them, I am not a satisfied customer at this point in time”.

Water is a necessity to surviving life. When we’re on the go, a bottle of water is much more convenient than trying to find the nearest water fountain. This is why Dasani water bottles are a good example of inelastic demand; they are one of the top sellers of bottled water in the country and people need water that is accessible whether they like it or not.

                This leads me to ask, why does someone feel the obligation to continue to purchase a product that could simply be replaced with an alternative product?

 

Demand Schedule and Graph for cookies, yo

https://docs.google.com/drawings/d/1nlThsxOMxzriUcYGq0Wa7ktgn8-0y5LRYdkv-E9Gc-k/edit