The law of demand states that as the price of a good decreases in price, people will consume more of it. In the cartoon to the right, an obsese child is eating a lot of everything (click to enlarge). The couch slopes downward and to the right. Does this prove the law of demand?
Flad-
ReplyDeleteI did a project on the economics of obesity last year in my micro class and you're spot on with your analysis. Additionally, I learned that many economists believe the huge rise in obesity started in the mid-1970's(from 1980 to 2000 adult obesity doubled, now 1 in 3 adults are considered obese). It started with changes in shipping technology, producers could ship their product cheaper and quicker.(The implications of this are many, including more disposable income allowing for a McDonald's on every street corner.) Therefore a cheaper price in food makes it more accessible and proving the law of demand. Also, another aspect of the obesity epidemic is opportunity cost. There are about 575 calories in a Big Mac, to burn that off would take one hour of playing tennis, or about 35 minutes of running. We value our short term opportunity cost, or what's happening now, but not the later effects of eating the Big Mac without exercising.
hi connor...i always say people discount the future heavily....that's why people carry so much credit card debt and commit crimes...thanks so much for you kind words....flad dog
ReplyDeleteHi,
ReplyDeleteI appriciate the skills of your blog writing and the time sharing with us.
I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.