Economics Introduction While many people think about economics as the study of money or purchasing, in reality the field of economics is much larger. Through a number of principles that have been developed over a number of years economics has come to investigate many of the phenomenon of the world…
Download file to see previous pages...
One of the unique things I have witnessed is the nature of people who buy collectible such as sports cards or movie posters. This essay examines applied economic principles to the nature of collecting and selling collectibles. Analysis The nature of the collectible marketplace is a notable economic phenomenon. Generally people usually buy things because they have an easily identifiable reason. For instance, people buy groceries because they have to eat, and they buy shampoo because they have to clean their hair. This is different for collectibles where the reason people purchase certain things is oftentimes mysterious. People note that they collect oftentimes for enjoyment (Yumeka). But still, why would one person be willing to pay thousands of dollars for a piece of cardboard with Mickey Mantle’s picture on it, but not be willing to pay $10 dollars for just a piece of cardboard? To a large degree economic analysis offers answers to these questions of collectible prices. The overarching area of understanding collectibles is through Mankiw’s principles. One of the Mankiw’s economic principles is that, “Markets Are Usually a Good Way to Organize Economic Activity” (“Principles of Economics”). When considering collectible prices it’s clear they are a direct reflection of the market. As indicated above the reasons people desire to buy collectibles is out of a personal or sentimental connection to the object they are buying. For instance, it’s noted that people oftentimes baseball cards because they are seeking to reconnect with the memories they had during their childhood (Douglas). Certain types of card then take on greater personal and sentimental value for people. A Mickey Mantle baseball card will carry with it a lot more sentimental value than a baseball card by a less popular player. According to Mankiw then, the invisible hand of the market will guide the price of this card in relation to the amount the market is willing to pay for it. Another important consideration is Mankiw’s principle that “People Respond to Incentives” (“Principles of Economics”). Within the collectible market this is an important principle that influences price and collector involvement. While people oftentimes are drawn to buying collectibles because they have an interest in the specific item, there is also the hope for many people that the item they buy will increase in value. It’s noted that baseball cards have been considered a viable alternative to investing in stocks (Bullock). In these regards, the collectibles market is made complicated as people who buy the item out of personal interests and people who buy it out of economic interests clash and combine. Consider the nature of a very rare movie poster. While the poster may not be as attractive as a poster one could purchase from Wal-Mart, it still sells for a considerable amount more money. This is related to Mankiw’s principle of incentives in part because people recognize that there are some people who desire the poster for a personnel connection to it; however, they also recognize that since the poster is rare there is only a limited quantity. In this way people are willing to buy the poster because they will be able to sell it to others at a premium because the poster is not easily found. Conclusion In conclusion, this essay has examined the phenomenon of collectible sales in terms of two of
...Download file to see next pagesRead More
Cite this document
(“Economics Essay Example | Topics and Well Written Essays - 750 words”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1393648-see-instructions
(Economics Essay Example | Topics and Well Written Essays - 750 Words)
“Economics Essay Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/macro-microeconomics/1393648-see-instructions.
As such, economic analysis relates to the study of economic systems in an industry to ascertain the effectiveness of the operations of a given industry with reference to its profitability1. With this, we are able to establish the optimum use of the limited resources to achieve a given economic objective.
Thus, short-run is the time period that quantity of an input or at least one of the many inputs is fixed while other inputs’ quantities can vary. Long-run on the other hand is that time period where inputs in entirety can be varied. Therefore, there is no specific time that can be taken as fixed or even marked on the dates of the calendar to distinguish short-run from the long-run.
If the quantity demanded of a certain product changes minimally or does not change at all, then that product is said to be a Price Inelastic Good. Consequently, if a product whose price increased and such a change brought forth an abrupt drop in quantity demanded of the same product, the good is said to be Price Elastic.
e that the people of a country would receive the best of every thing that could be education, housing, health services or the other various basic necessities.
Economics has been called and is known as a Social Science one that actually focuses on the subject matter that is
resources and maximizes his/her utility by selling it, since the economic problem of scarcity prevails; allocation decisions are made necessary by the market forces. Hence the point of interaction of the consumer’s demand curve and the producer’s supply curve is known as
sought to apply a broader theoretical and conceptual tradition of economic thought by placing emphasis on neo-classical synthesis – a combination of neo-classical economics and Keynesian economics.
Conservative economics is based on Milton Friedman’s teachings and
s the above figure illustrates, if there is a supply shock in an economy (such as increase in the price of oil, labor or other costs that increase the cost of doing business), the short run AS curve shifts to the left. The real GDP decreases from Q to Q’ and the price level
These tools enable professional mainstream economists to address various economic issues facing the world. Mainstream economics is about modeling in a way that traditional or heterodox economics is not. It originated from the neoclassical synthesis of the neoclassical
4 Pages(1000 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Economics for FREE!