5 Basic Principles of Economics

Thinking Like an Economist

Tag: Equilibrium Compatibility

  • Thinking Strategically while Getting Punched in the Mouth

    Thinking Strategically while Getting Punched in the Mouth

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    Canada, and other countries, were just punched in the mouth by the threat of tariffs imposed by the US. When faced with a problem, some people propose a “plan” to fix it but a plan is not a strategy. Strategizing is hard work. Some memorable quotes offer memorable advice.

  • Economic Impact of a Dragon Year: Luck vs. Reality

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    The Year of Dragon is believed to auspicious and lucky in Chinese culture. Research has found that more than the usual number of babies are born in China during Dragon Years, and that there are more marriages than usual. Then what? To recognize the end of the Year of the Dragon and the start of…

  • Unexpected Economic Insights During Christmas

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    Christmas is an enjoyable time for many, including many non-Christians living in countries where Christians are a minority. It is a time for presents and food and thinking of others. This post identifies some unexpected ways that the five basic principles of economics appear during this time. Familiar attempts to apply economic ideas to Christmas…

  • Market Control: How Barriers Impact Prices

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    Some economic discussions start by assuming that the market in question is perfectly (or almost perfectly) competitive. Other discussions start by assuming that a firm is mostly monopolistic. Understanding the difference matters, for several reasons. There are examples of monopolists and of cartel agreements [1] [2] [3]. Other investigations are on-going while politicians ask for…

  • Understanding a Market Equilibrium: Challenges for Restaurants

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    Something seems to be happening in the US restaurant market. Lots of well-known chains are closing “under-performing” locations while others are asking for bankruptcy protection. [1] [2] [3] Even in Canada, some news items talk about restaurants offering discounts to “bring customers back” because “eating out is expensive”. This post notes that change is common…

  • Predicting an Election (Stock Market)

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    On Tuesday night, two US politicians will talk and then some media experts will talk about what the politicians talked about. Polls suggest that the country is nearly split 50/50 about which politician is preferred. For media companies, that is great news: they can say “Stay tuned for the latest news on this small but…