Showing posts with label supply and demand. Show all posts
Showing posts with label supply and demand. Show all posts

Friday, October 31, 2008

Inflation Hits the $1. 0 Cleaners

Justin here. I have breakfast every Thursday with some guys over at Biscuitville. Across the street there is this Dry Cleaners shop that obviously didn't think through all the implications of inflation (pardon the poor picture; I snapped it with my phone.)

Not only is the new name on the sign $1.75 Cleaners, (note much bigger "7") but you can see on the window that they call themselves $1. 0 Cleaners, twice!

There is some equation in economics with a cute chart that dictates when you decide to raise prices (I think it's when Marginal Return equals Marginal Cost or MR=MC) . . . I think it should really read MR = MC + new signage.

Monday, October 13, 2008

FIX IT!

Justin here. We still have a long way to go, but Mr. Market was ecstatic today for some reason. Maybe someone took SNL's advice and decided to "fix it!" . . . or then again, it was probably just supply and demand. Speaking of Mr. Market, you can find our Market Commentaries here; the "poor fellow" plays a lead role in our newest one.