Friday, February 8, 2013

Deep Sea Mining and Supply

In Prin. of Microeconomics one of the topics we talk about is firm and market supply.  Basically the idea is that there is a positive relationship between how prices change and how firms supply goods or services to a market.  Here is a real world example of exactly that.  Notice that since the price of commodities are increasing, firms find new ways to produce more output, where the increased production is due to increased mining in areas that were economically too expensive to mine previously.

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