Economics Terms A-Z
Supply and Demand
One of the most fundamental tenets of economics. Supply refers to the quantity of a product being produced, and demand the quantity consumers wish to buy. In its most basic form, it refers to the theory that the price for a good or service will eventually settle at a point when its demand and its quantity are equal (assuming all other factors remain equal). This is referred to as the equilibrium.
The demand depends, with all other factors being equal, on the price of the commodity. Of course, all other factors are never equal: other goods in the market, the preferences of consumers, and many other things influence the demand of a good. The demand curve generally slopes shows consumers more willing to buy a product when it is cheaper and less willing when it is more expensive. The quantity of a product is also dependent on many factors: how much it costs to make the product, how much substitutes cost in the market, what technology is available, and numerous other things.
The theory is used to help businesses define how they price their goods. The theory assumes that consumers have the power to influence the price of a good, in that they increase its price if they buy more and make its price decrease when they decide to buy less. As the price increases, consumers are also less likely to purchase the product, and as it becomes cheaper, they are more likely to buy. However, these responses are not necessarily proportional, and this is where elasticity comes into play.
2019 European Elections Threaten to Bring the EU to Standstill
With the European elections just two weeks away the EU’s future is looking far from certain - the union is beset by crises and the resolve of its member states is being tested like never before. Much has changed since Europeans last took to the polls: Ukraine had its borders forcibly redrawn when an increasingly hawkish Russia invaded and annexed Crimea; global drought, poverty and violence drove record numbers of refugees to the shores of the Mediterranean; and China has continued its march as a formidable economic and political force.
A Critique of Neoliberalism
Few would contest it has been the ideology of our political age. Ever since the 1980s, it has dominated western politics, underpinning governance, influencing culture, and leaving its indelible mark across society. During this time its core tenets were rarely challenged and only its peripheral aspects tweaked. The 2008 financial crash, however, changed this, and for the first time confidence in neoliberalism was shaken. With the loss of savings, skyrocketing inequality and falling living standards that followed, people began to question the system that had facilitated such a calamity.
Supply and Demand for New Ph.D.s in Economics
Source: Survey of the labor market for new PH.D. hires in economics 2011 – 12, Sam M. Walton College of Business, University of Arkansas: 179 of the institutions responding to the current survey are expecting to hire 172 new Ph.D.s for the 2011-12 academic year. The greatest demand is for the field of macro/monetary economics at 14.8 percent, followed by general economics at 12.2 percent, and microeconomics at 10.8 percent …