Today was my day off which I very much needed, I went to the beach and got to go to Six Flags with my mom brother and Aunt JoAnn’s Great grand niece Mickie. I get to go to six flags all the time because I am a season pass holder but because work is my life I haven’t been since I went with Craig a little over a month ago. I did not get to go on the new ride instead we did the small stuff skull mountain, the dark night and Daffy Duck seaport because Mickie is from New Mexico and this was her first time going to an amusement part we took it easy.
Basically this week I want to talk about the value of a dollar, How is it that where I work a slice of pizza and a Gatorade cost the same price, $3.48. To me that does not seem quite right especially when you think that a bottle of water is $3.21 the prices just don’t seem to add up. This has a lot to do with supply and demand.
So I am not going to do a great job with explaining this because I only have twenty minutes to write this before the library kicks me out and I only passed Econ because there was extra credit. But basically the prices of things are determined based on a bunch of factors including the amount of availability the supply and the number of people who are willing to pay the set price for the item or the demand. A great example of this is the snuggie a very american invention a blanket with sleeve holes so we can be warm and change the channel on the TV. At first the infomercial was selling them at ten dollars but if you call now you could get two for the price of one with a free book light. Over time there were less people who needed snuggies because so many had already been sold so they became 4-5 dollars in stores like CVS and five below. Now they are at the dollar general for only $3 but no one even wants it at that price. (I know my family of five owns 8 snuggies and only paid like $20 for them)(If you don’t have a snuggie yet break down and buy one, if I get a comment about this I will raffle a new snuggie off next week.)
Not my family but it might as well be with the number of snuggies on the couch
The basic idea of Supply and demand comes up in the Lorax movie where there is so much demand they run out of supply but make tons of money before that happens.
When something is priced too high weather because of tax (a negative subsidy) or just because it is higher than you are willing to spend you have become locked out of the market. If that happens because of tax there is a Dead Weight Loss which is the number of consumers that would have bought the item but will not now that there is a tax. I see this happen to people at work the french fries say $3.50 on the board but after tax they are $3.75 and I feel really bad sometimes bad enough to pay the difference making me a subsidy myself but I am getting off topic.
I bought a tank top at six flags off the clearance rack for five bucks (there was no tax on it) and that is the equivalent of me working my minimum wage job for about thirty five minutes and I know I will wear it more than that but is it worth it. I do not have an answer this is just how I think of my money now how long did it take me to earn enough to buy the item is it worth me spending blank amount of time standing around serving people fast food? Just something to think about with a quick Economics lesson tossed in there for free.
just got home from the beach wearing my new green lantern tank from the clearance rack
can you tell i am really happy?
Till next week I’ll be thinking of you 🙂 😛