Chapter 4 Reflection

 

Yes, the prices of the taxi medallions would be affected. They would have to adjust their pricing to reflect the pricing of the Uber and the Lyft drivers to be comparable in the business. This does shift both the supply and the demand curve. You have more supply to choose from and prices may go down due to the supply is so high. This could also put some companies out of business.

An example of a supply of goods that changed quickly is when Walmart came into Rifle and completely changed everything. The supply and demand curve went crazy on this one. Of course, all of the mom and pop shops that could not compete with the big box store ended up closing because their supply was so massive.

I used a site to purchase airline tickets with a hotel. I know the hotels set some rooms aside for situations such as this. This does ride the price up on the other rooms to accommodate for the rooms that do not sell. It all depends on how many rooms they end up having to put in on a  promotion.

 

Chapter 1 Reflections:

Reading about the Ten Principles of Economic was very interesting. The principles that help people make decisions, discuss how people react to different situations and scenarios, and just how the economy works as a whole. Having a business during the economic downturn during 2011 was very tough and some of the topics that are discussed in this chapter really hit close to home. You asked the question, what in this chapter made you think about an economic concept differently than you previous beliefs? People facing trade offs in tough times and they also trade their time which is so valuable.