minimum wage

I believe that minimum wage is key to keeping the American economy in balance. Especially with such a high cost of living and cost of goods.  If people were not given the opportunity to obtain the ability to live comfortably then the economy would crumble. I believe that the federal minimum wage should be raised to $8.00-$10.00 per hour. This would make the most sense since then anyone in America could both work and live a conformable lifestyle. By pumping more money into the economy, more people would be able to spend more. This would only continue to benefit the economy positively. Personally, I am a high-schooler that makes over $10.00. I am unable to work full time and can only work average 12hrs a week. By buying more and more groceries and having to help out around the house, I physically see the price and cost of living by just picking up eggs, milk, and bread once a week. Thankfully I don't have to buy my own yet, but i still see these prices first hand almost weekly. I believe this is an important perspective for all young adults to have in these economic times. 

price floor

Price floors seem to be a somewhat ineffective regulator when considered for general products. However, they appear to be effective when applied to minimum wage or gasoline. By setting a price floor for gasoline, the demand and supply are able to remain above the demand equilibrium. This is important because if there was not enough gasoline to go around, people (in mass quantities) would get very upset very fast. If there wasn't a price floor for a products such as gasoline, there would be lines and lines of people by the thousands to stock up on gasoline if it dropped dramatically in price. By initiating a price floor for minimum wage or gasoline, supply and demand are able to stay high enough that there is not a shortage of an important product which fuels the economy so directly, and in some cases, literally. 

price celing

When price ceilings are non-binding and appropriately regulated, then they can be effectively implemented economic tools. When established as non-binding price ceilings, demand and supply are able to stay up. Customers are willing to pay slightly more for a product as long as there is plenty to buy. If price ceilings were binding, then suppliers would drop out and cause a shortage in the product. Especially because if costs are lowered too dramatically, then quality is often reduced as well. By providing a product that is attainable by many and supplied in plenty (with good quality) then the product will be able to be economically stable. I would personally put price ceiling son things like tobacco, alcohol, and other addictive products. This would discourage young people to attempt to purchase such products while still allowing the legal buyers to purchase such products. 

supply

inelastic supply: salt












 elastic supply: coke brand soda

gasoline

Gasoline is a predominately an inelastic resource because most people, especially in the United States, are willing to pay whatever it takes for gas in order to maintain the comfortable lifestyle and commute which they are used to. I know that for my family, this applies to us. 

My dad drives over 30 minutes to work every day, my mom only drives 10 minutes, and I drive 25 minutes to school every day. The interesting part of this is the kind of "fuel efficient" cars we all drive. My mom drives a 2007 Chrysler Sebring which gets an average 32 mpg on the highway. However she doesn't drive very far so she doesn't have to refill the tank often.  

My dad drives a new Kia Optima which gets an average 36 mpg on the highway; this is a good thing since is drive to work is mostly on the highway. The great thing about this car, is that it also has an eco button which provides for better usage of gasoline; this make the best use of gasoline for my dads commute. 

However, I drive a 2001 Dodge Durango. This car gets an average 12 mpg on the highway. I probably drive the farthest overall on an average weekday in comparison to both my parents and yet I drive the least fuel efficient car with the largest gas tank. With today's gasoline prices, it takes about $80.00 to fill up the tank approximately every 12 days. Yet, the price and frequency wont alter which car I drive nor the need for it as means of transportation.

demand wrap up

elastic and inelastic

demand headlines

1. Complementary goods/services: Nike Makes New Shoes, Stocks Skyrocket
2. Substitute goods/services: Timbers Funding Ended, REAL Football Team to Come for Oregon
3. Elastic demand: Pepsi Shuts Down, Coke Sales Triple
4. Inelastic demand: Milk Reaches Ledge and Dairy Prices, Customers Grumble and Businesses Hurt

Milk Reaches Ledge and Dairy Prices, Customers Grumble and Businesses Hurt

With dramatic droughts in the midwest resulting in unfed cows, dairy and milk prices skyrocket. While customers claim they can go without most dairy products, milk is an
essential most cannot get by without. Albertsons store manager in East Foothills, CA, Larry,offered comment on the scene, “It’s difficult to have such shortages combined with such high prices. The store hardly ever has enough milk in the fridges to last a week of sales anymore, and customers are cranky.” It was evident that throughout the country, the increased prices are not only hurting large businesses and customers.
Small businesses and local stores are really feeling the pressures of price. Marge and Bob owners of Homegrown and Locally Owned, are only two miles from Larry’s business, but feel the pain much more than Larry does. “Our produce and dairy stand is our main source of income since we’ve both retired,” commented Marge. “ “Since the increase in prices, we can’t afford to stock up any dairy prices in our store,” admitted Bob.
But the big hit in the wallet goes to the primary consumers of dairy products. These are the local bakeries which were once booming here in East Foothills. Already, one hispanic pasteleria has gone out of business with the Cupcake Shoppe and Bundt-Cake Bakery struggling as well. Mary, the head baker of the Bundt-Cake Barey had little to say positively on the matter, “It has been difficult to complete our custom orders, especially larger cakes requiring more butter and milk than our mini-bundts.” However, the Cupcake Shoppe appears to be finding some stride. “With the high prices and consistent demand for our cupcakes, we have had to look at alternatives. We have recently discovered some alternative recipes that are primarily vegan that taste delicious. We are excited to start selling them to the public later this week!”
With adversity, comes success. Even though the prices have hindered so many and hit the wallets hard; some are still able to rise above it and find new ways to make products available to their customers. Yet, hopefully the drought subsides and the rains return to the midwest soon.

demand

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