Economics Made Economical

Category Archives: Perfect Competition

Remembering American Independence: An Economic Guide

Happy Independence Day To All Americans! Happy 4th of July, America. Remember what the holiday means as you celebrate it today. And be inspired to make a difference. Let’s remember what this day originally stood for–Not what we have become Freedom alongside an apathy and ignorance of the world around us will only lead our country back to chaos, …

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Even More Benefits of the Fair Tax

The National Fair Tax has many benefits over the American government’s current tax system. I have previously discussed just some of the most basic of these. I have also tried to dispel some common misconceptions about what the Fair Tax is not. Some questions, however, remain: 1. How can the Fair Tax include raise the …

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The Monopoly’s Effect on Society

The graph to the left shows a perfectly competitive market with an equilibrium point at a price of $200 per item and a total quantity of 3100 items being produced and sold. Because the industry is perfectly competitive, long-term net profits made by the producers are zero. For this reason, the Supply Curve is also …

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Tip of the Day: Elasticity

A good is considered to be Elastic when a small change in its pricing leads to a large change in the quantity bought/sold. Examples include primarily perfectly competitive markets for unessential goods. A good is Inelastic when its price can be changed wildly without having a major impact on how much is purchased. Gasoline, healthcare, …

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Supply and Demand

This is a typical Supply vs. Demand graph as used in microeconomic theory. The total Quantity of a good that all corporations in a perfectly competitive market produce lies on the X-axis. The Price of the product is on the Y-axis. As prices for a good decrease, customers are willing to buy more of the …

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