Tag Archives: economics

Gains and Losses

Let’s say that on a particular day, you are in a calm state of mind. Neither too happy, nor sad. Suddenly you are notified that you have been selected for an award of Rs. 10,000. The award is genuine, there … Continue reading

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Travel Pricing

Let’s look at a simple example of travel pricing. Say there is a train route from Bangalore to Mumbai. Tickets are two way, for simplicity, with the onward journey on Friday, and the return journey on Sunday. Such tickets are … Continue reading

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Analysis of an Ad

If you have something to sell, you need to draw buyers to your stores. Ads are one way to do this. Say you wanted to advertise your brand to people in your city. The first thing that comes to mind … Continue reading

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Price Discrimination

The selling price of a good is set by, among other things, supply and demand. Normally, we would expect a seller to sell a good at the same price to all buyers. Price discrimination refers to a situation where a … Continue reading

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Transportation

City traffic is tough to live with. Almost all major cities of the world suffer from congestion on the road. A majority of commuters in Bangalore spend around 1.5 to 2 hours everyday commuting to and from work. Any economist … Continue reading

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Potential and Effective Supply

We all know that the price of a good depends on supply and demand. Here, we will look at the notion of potential supply and effective supply, and how it affects the market price and perceived value of the supply. … Continue reading

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Trade and Asymmetry of Value

Trade, or barter, or exchange of one commodity for another, is one of the foundations of modern life. Most transactions today are carried out using money. Money is exchanged for something – fruits, a home, a person’s time, etc. We … Continue reading

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